Ken Mulkearn | 18 Aug 2021

Inflation rise momentarily arrested by base effects?

The official indicators of year-on-year changes in the cost of living showed a fall this month, mainly as a result of so-called ‘base effects’ arising from the same period a year ago, as the economy emerged from the first coronavirus lockdown. The RPI showed a small fall, from 3.9% in the year to June, to 3.8% in the latest figures, for July, while the CPIH and CPI fell by greater amounts, to 2.1% and 2.0% respectively. The CPIH had been showing at 2.4% while the CPI was 2.5%.

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