Inflation should rise in November and into 2016
by Larry Elliott Economics editor from on (#TVMR)
Unlike headline inflation, the core measure of the cost of living actually rose in October
Inflation has reached a trough, at least for now. The government's preferred measure of the cost of living remained unchanged at -0.1% in the year to October, but will turn positive when the data for November is released next month.
The reason is that the consumer prices index (CPI) fell by 0.3% in November 2014 as a result of the plunging cost of crude oil. Unless that decline is repeated this November - which it won't be - the annual inflation rate will mechanically rise.
Related: UK inflation remained negative at -0.1% in October
Continue reading...