Inflation rises again

The Bank of England’s forecast of 13% inflation may soon be realised. It is based on the Consumer Prices Index (CPI) which, in the year to July, rose by 10.1% (CPIH, including a housing element, 8.8%). But the unions’ preferred Retail Prices Index (RPI) measure shows inflation is running at 12.3%, driven by rising food and energy prices. 


With two percentage points’ difference between RPI and CPI, 15%+ RPI inflation could be on the cards.