Tuesday, December 13, 2011
Inflation falls to 4.8%
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

Consumer price inflation fell from 5% in October to 4.8% in November, RPI inflation from 5.4% to 5.2%. It is falling, though perhaps not as fast as some might have hoped, and should receive a big downward kick next year, particularly when January's VAT hike drops out of the 12-month comparison.

As importantly, some of the most visible price pressures are starting to ease. According to the Office for National Statistics: "The largest downward pressures to the change in CPI annual inflation between October and November came from food, petrol, clothing and furniture, household equipment & maintenance."

The fall in inflation should happen faster than the rise in unemployment, easing the misery index. The inflation release is here.