After three months of rising headline inflation, we seem to have substantially moderated to a low 5.17% in March, on the consumer inflation front: Some of this as you can see, is the base effect, where the inflation index last year started rising again in March and went up to the 120 levels in September after which it has flattened completely. In fact, the March number at 120.1 is flat since September 2014 (when it was 120.1 as well). While much of the drop has been due to the fall in oil prices, it’s also relevant that food prices have been very stable since then. In terms of inflation, food has the biggest weight, and saw about 6.2% inflation over the year. Costs on Housing and Transport have fallen substantially since last September, and some of it is the way data is collected (April is when some of the housing data will change, for government housing rentals).… (Read On…)
[via Capital Mind]
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