Tuesday, September 16, 2008
Inflation at 4.7%, Bank letter
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

Inflation rose from 4.4% to 4.7%, more or less as expected, mainly reflecting the rise in gas and electricity prices but also higher food bills. There was better news on RPI inflation, which dropped from 5% to 4.8%. More details here. Mervyn King, in his letter to the chancellor predicts that CPI inflation will peak soon at 5% and drop sharply through 2009. His letter is here.