Tuesday, June 14, 2011
Inflation takes a temporary breather
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The May inflation figures were OK, with consumer price inflation and retail price inflation stuck at 4.5% and 5.2% respectively. Still well above target, and above acceptable levels, of course, CPI inflation remaining at its highest since October 2008.

There is more inflation to come, barring a sudden drop in energy and commodity prices. The domestic fuel price rises announced by the utility firms have yet to feed through into the numbers. The May numbers benefited from a reduction in air fares (Easter timing effects) but were boosted by higher food prices.

This was a month when everything was unchanged, including RPX inflation, 5.3%, inflation excluding indirect taxes, 3%, and inflation at constant tax rates, 2.8%. More here.