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Core CPI (excluding energy, food, alcohol and tobacco) rose by 5.1% in the 12 months to December 2023, the same rate as in November;
The rise in tobacco prices is still related to a change in the law deliberately pushing prices up. Everything else nets out to zero. And no one expected another significant fall in inflation until the energy price cap falls in a couple of months’ time.

The media will be all over this saying the battle on inflation has not been won as yet and that catch up wage rises are threatening a wagwe price spiral. All of that is nonsense. By mid-year inflation will be near 2%. That will be hard to avoid now. Eberything else in the media omn this issue is just fodder to let the Bank of England keep interest rates high.

Core CPI is the policy relevant inflation rate, not CPI.

5 thoughts on “Sigh”

  1. I’d agree jgh. Time preference rate for money. (Although what about inflation?) However everybody seems to live in Murphyworld these days. Where savers subsidise borrowers.

    I was reading a buy-to-let’er whine today about the charges of letting agents on their extensive portfolio. No doubt another one’s used preferential access to artificially low interest credit to collar much needed homes in front of regular home buyers. And they can’t even be bothered to do the work of managing the tenancies. Fuck ’em.

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