Thursday, April 12, 2012

Core inflation jumps higher

This morning’s release of the March Consumer Price Index by the CSO shows that the headline rate of inflation edged higher rising from 2.1% in February to 2.2% in March.  A measure of “core” inflation excluding mortgage interest and energy products reveals a different pattern.  The measure of inflation represents about 85% of the overall index.

Core Inflation March 2012

Core inflation jumped from 0.7% in February to 1.3% in March and this is the highest this measure has been since January 2009.   Annual inflation in mortgage interest turned negative for the first time in almost two years in March and the contribution of rising energy prices to the CPI also fell slightly.

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