- It's bad news, with CPI up from 3.3% to 3.7%
- RPI which includes mortgage costs and housing depreciation 4.8%
I really feel the ONS should be publishing on that page CPI - taxes (CPIY) and also a core inflation index (removing volatile prices like food and petrol). This would help better explain the logic behind the MPC's decision.
The issues raised in - difficult choices for MPC remain. Nevertheless, with CPI inflation predicted to rise above 4%, it is likely to increase pressure to raise rates.
Interesting to read this article in the Guardian - Inflation Surges
Many phrases sound ominous like:
"Inflation expectations have risen markedly in recent months, and gilt investors are rightly starting to question the Bank's inflation-fighting credibility..."
"Bob Crow, general secretary of the RMT union, said his negotiators would factor in higher inflation in pay talks across the transport sector. "We will not tolerate a situation where our members' standard of living is eroded as a result of the mistakes and the reckless gambling of the politicians and the bankers."