Tuesday, 7 April 2009
Inflation not falling as fast as expected
The latest (February 2009) inflation figures were a bit of a surprise in that the CPI rate actually increased from 3.0 to 3.2% while the RPI rate which includes mortgage interest didn't go below zero--it fell from 0.1 to 0.0%. The CPI means the Governor of the Bank of England may have a write another letter explaining why inflation is too high. A bit ironic given that everyone is terrified about deflation. The graphic from the BBC shows what's going up and what's going down (click to enlarge).