Tuesday, March 24, 2009
RPI inflation at 49-year low - but not yet negative
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

RPI inflation fell to zero last month, against widespread expectations of a significantly negative number. Higher food prices bumped up prices more than expected and sterling's depreciation appears to have had a significant impact, despite very weak demand. CPI inflation rose from 3% to 3.2%, against expectations of a fall. RPI deflation is still expected but we'll have to wait a month. Further details here.

The governor was required to write a letter to the chancellor explaining the CPI rise. His letter is here.