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Commenting on CPI inflation reaching 12 month high PDF Print E-mail
Wednesday, 17 February 2016

Commenting on CPI inflation rising to a 12 month high in January, Shilen Shah, Bond Strategist at Investec Wealth & Investment, said: “The positive CPI inflation rate of 0.3% for December 2015 was largely due to the year on year airfares not falling as fast as compared to the same period in 2014. After a long period of food price deflation, the food component in the inflation basket was a positive contributor with some evidence that companies are adjusting prices ahead of the new national living wage.

“The low oil price however is likely to continue to be a drag on inflation throughout the majority of this year despite there being some indication that the economy is nearing capacity constraints in a number of important sectors.”
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