While annual retail inflation was at a 15-month high of 7.44% in July, food price inflation rose to 11.5%, its highest in more than 3 1/2 years, pushing Prime Minister Narendra Modi s government to act quickly to avert any backlash from voters in upcoming state and national elections.
increase won t come. let s not forget that yesterday we heard that average uk wages were rising at their fastest pace in 20 years. katharine neiss, chief european economist at pgim fixed income, said while it was enouraging for uk consumers, it s unlikely to stop interest rates going higher. it s encouraging, as you say, that headline inflation is coming down. no doubt uk consumers will be relieved to see that energy prices and food price inflation is beginning to cool. but that said, core inflation, that is a measure of inflation that gives us perhaps a better read on domestic inflationary pressures. that s not really showing any signs of coming off. and so that means that while encouraging in these data, we re not quite there yet in terms of seeing inflation really dropping off in a sustainable way and uk inflation still well ahead and uk inflation still well ahead
we heard that average uk wages were rising at their fastest pace in 20 years. katharine neiss is chief european economist at pgim fixed income. thanks very much for being with us today, katharine neiss. so clearly welcomed news that inflation has fallen to this point. still quite far off the bank of england s target, though. is everything going to plan or as we had expected? 50. to plan or as we had expected? so, toda s to plan or as we had expected? so, today s data to plan or as we had expected? srr, today s data are to plan or as we had expected? s57, today s data are not to plan or as we had expected? s513, today s data are not a to plan or as we had expected? sr3, today s data are not a surprise. it is encouraging, as you say, that headline inflation is coming down. no doubt uk consumers will be relieved to see that energy prices and food price inflation is beginning to cool. but, that said, core inflation, that is a measure of inflation that gives us perhaps a better read on d
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