The CSO have published the October CPI release. The headline is that annual inflation is up. In October, the overall rate of inflation increased to +0.7% from +0.5% in September. But what are the measure of core inflation we have been tracking.
This measure excludes the effect of mortgage interest and energy products and represents 85% of the overall index. Mortgage interest represents a single product and you can see the components of the energy products sub-group here.
Deflation in this measure is proving much more stubborn. Core deflation was –1.41% in September and was largely unchanged at –1.42% in October. Excluding mortgage interest and energy products, consumer prices fell slightly in the month to October.
It is probably too much to expect that there will be no commentary relating the CPI figures to inefficiencies in the “state-controlled” sectors but if there is note this.Tweet