Premium
UK INFLATION: DOWN BUT NOT OUT
Author(s) -
Sentance Andrew
Publication year - 1994
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1994.tb00468.x
Subject(s) - inflation (cosmology) , economics , headline , monetary economics , real interest rate , index (typography) , inflation rate , compensation (psychology) , interest rate , business , advertising , psychology , physics , theoretical physics , world wide web , computer science , psychoanalysis
The release of the December retail prices index showed a rise in both the headline and the underling rate of inflation. That was not altogether unexpected with higher fuel and tobacco duties feeding through from the Budget. But it provides a reminder that inflation can go up as well as down. Looking ahead, inflation can go up as well as down. Looking ahead, inflation will be subject to conflicting pressures over the remainder of this year. Worldwide, inflationary pressures are weak. But, on the domestic scene, a Mortgage rate cuts which have helped to bring down the headline rate of retail price inflation will be less helpful. Indirect tax increases will push up the RPI directly. And employees may look for some compensation for direct tax increases in the next pay round. This assessment looks at the likely impact of these forces on inflation and the future course of interest rates.