Although core CPI inflation remains muted at 1.6% in July, the surge in prices last month specifically could be the start of a more significant rebound, as the added costs and ongoing supply constraints stemming
from the pandemic and physical distancing offset the disinflationary impact from weak demand. The prices of the goods and services that fell most sharply at the start of the pandemic – like air fares, hotel room rates
and motor vehicle insurance rates – are now rebounding, while low inventories explain the surge in motor vehicle prices. With unit labour costs up sharply in the…

Read the publication Rebound in inflation has further to run on the Capital Economics Website.

For more info about this post:

View Source

close

Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Leave a Reply

Your email address will not be published. Required fields are marked *