Tuesday, 19 January 2010

Inflation is back

The inflation numbers for December (2009) are out...

CPI: 2.9%, up from 1.9% the previous month.
RPI: 2.4%, up from 0.3%.

So CPI is a whisker under the letter-writing 3.0% level and is the largest ever increase in the annual rate between two months. This is due to a couple of benign factors dropping out the back-end of the index: an oil price drop in late 2008, and the VAT rate reduction.

Now here's a truely horrific number...

RPIX: 3.8%, up from 2.7% in November.

RPIX is RPI excluding mortgage costs, ie, it's the real inflation rate when you disregard the government's manipulation of the housing situation.

And remember, the Jan 1st increase in the VAT rate isn't even in these figures yet!

ONS

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