Tuesday, December 14, 2010
Inflation at 3.3% - fractionally disappointing
Posted by David Smith at 12:00 PM
Category: Thoughts and responses

The markets were prepared for 3.2% consumer price inflation for November, so 3.3% was marginally disappointing. Retail price inflation rose to 4.7%, from 4.5%. We know that the Bank of England expects inflation to stay above 3% through 2011.

That said, there are one or two unusual features in the November data, including record October to November price increases in food and alcohol (1.6%), clothing and footwear (2%) and furniture and household goods (1.6%). That to me looks like retailers preparing the ground for sale discounts, which will look more generous from a higher base. Nothing to worry about in these figures that we did not know before. Details here.