Tuesday, September 17, 2013
Inflation slips a little
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

The one thing Mark Carney doesn't need is a renewed surge in inflation, so today's news that the rate for consumer price inflation slipped to 2.7% in August from 2.8% in July will have come as a relief. The two other measures of inflation emphasised by the Office for National Statistics, CPIH and RPIJ, were unchanged at 2.5% and 2.6% respectively.

Retail price inflation, however, which many regard as the most representative measure, rose from 3.1% to 3.3%. The ONS's broad verdict is that inflation has continued its broadly stable pattern since early 2012.

There may be better news to come. The ONS also reports that factory gate inflation slipped from 2.1% in July to 1.6% in August. In September and October last year the consumer prices index rose by nearly 1% (combined), so there is the prospect of a fall in the rate as we move into the autumn. More here.