The last time we heard a UK  inflation figure, it was 2.8% per year. Today it has been announced that August inflation “fell” to 2.7%. However, the Consumer Price Index has INCREASED from 125.8 (July) to 126.4 (August). That is an increase of 0.6 in ONE MONTH, which when annualised, gives a price inflation figure of 5.7% per year!  This is a situation which we’ve been amused by for quite a long time now: Inflation falling while prices increase. The magic of numbers! Here is the latest ONS bulletin. The numbers are on page 4:       http://www.ons.gov.uk/ons/dcp171778_323760.pdf

Leave a Reply