Temporary factors are behind much of the latest price rise data but with the cost of energy and raw materials also going up, worries about inflation becoming 'sticky' could be amplified in coming months.
As with so much in economics, it's possible to argue both sides here.
One year on, restaurant prices are no longer discounted, so there is what economists call a"base effect" pushing up the inflation index.Indeed, that is likely to be the broad message we get in the coming weeks from the Bank of England Governor Andrew Bailey, who is now duty-bound to provide a letter of explanation as to why CPI is now more than a percentage point above the monetary policy committee's 2% target.
The problem, however, is that the Bank has repeated this argument for most of this year, yet inflation has kept rising faster and further than the Bank's forecasts implied.Now it looks like the CPI index will get to 4% before the year is out. Across most raw materials like copper and steel, timber and wood, cement and masonry, food and drinks, prices seem to be rising far faster than usual.In the past few months, wholesale energy prices - not just in the UK but across Europe - have risen gradually and then sharply.There are plenty of reasons for this: a shortage of gas and lower-than-usual wind speeds in the North Sea among them.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Mum frustrated by kid's 'loud meltdowns' and 'blood curdling screams' in gardenThe mum took to parenting forum Mumsnet's popular Am I Being Unreasonable [AIBU] thread to seek advice and ask if she would be in the wrong
Lire la suite »
‘In America: A Lexicon of American Fashion’ is coming to The MetThe first of a two-part, year-long extravaganza, ‘In America: A Lexicon of American Fashion’ is organised into 12 sections that seek to define the emotional qualities in Am...
Lire la suite »
UK inflation in record August jump as food and drink prices riseLeap to 3.2% from July’s 2% is largest increase in annual rate from one month to next since records began
Lire la suite »
Inflation sees sharpest increase on record - ONSUsed cars, food and petrol are among the factors driving prices higher - in addition to a big jump in the cost of eating out compared with a period last year when diners were enjoying a government-subsidised discount scheme.
Lire la suite »
Teen Mom’s Farrah Abraham looks unrecognisable after 'Kardashian' makeoverTeen Mom’s Farrah Abraham looks very different these days as she shows off glamorous ‘Kardashian’ makeover and blonde hair
Lire la suite »
Richard Madeley net worth: GMB guest presenter is worth surprising sum of moneyRICHARD MADELEY has been working as a broadcaster for more than three decades, but how much is he worth?
Lire la suite »