Tuesday, August 18, 2009
Inflation sticky at 1.8%
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Consumer price inflation was unchanged in July at 1.8%, against expectations of a fall, while retail price deflation eased from 1.6% to 1.4%. Furniture and alcohol prices were mainly responsible for keeping inflation above expectations. The Bank of England, as we know, expects the CPI rate to fall in the coming months because of spare capacity in the economy. More here.