Friday, February 11, 2011
Pipeline pressures
Posted by David Smith at 01:00 PM
Category: Thoughts and responses

Consumer price inflation is unlikely to have jumped as much in January as the rise in output price inflation from 4.1% to 4.8% reported by the Office for Natonal Statistics. Even so, the figures were a reminder that things are going to get worse before they get better as far as inflation is concerned. "Core" output price inflation rose from 2.6% to 3.2%, mainly reflecting the increase in VAT.

Input price inflation, up from 12.9% to 13.4%, confirmed that even though pay growth is subdued, industry is facing cost pressures. More details here.