Does anyone still believe in the deflationary myth? Thought not.Monthly food inflation this February was 1.5 percent. That is the highest rate in at least four years. To tell the truth, it could be longer than that, but I got bored calculating the monthly inflation rates. Going back four years was far enough.
6 comments:
Markets gave up on deflation about a month ago. Hence the recent equity rally
Are you sure that's right? I just downloaded "CPI monthly percentage change 1988 to 2009" from http://www.statistics.gov.uk/ and it looks like it was 1.6% in Nov 08, 2.4% in Jun 08, 1.8% in May 08 and Oct 07.
mkz
The data refers to a) food, b) just February (for each year).
And of course, it is possible that I got it wrong.
Alice
The only surprise is that it's not much higher.
I am having some minor renovations done on my house. I asked 2 different (semi-skilled) handymen for quotes for the work. I was floored when both quotes came in at over £22 per hour. Once again, the official measures of inflation are way behind the curve!
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