Consumer price inflation picked up a little more than expected in June 2015, with the index moving up 5.4% more than the same time last year. This is the highest headline number since October 2014, and a little surprising since there wasn’t anything like this that was expected: Both Rural and Urban inflation have perked up, and the increase in inflation is much more in rural: Food inflation is up over the last month , but so are every other subcomponent except education and housing. The upward pressure on inflation is surprisingly large. And finally, what is a serious worry: Core inflation comes back up to the highest level since October 2014. Remember that core inflation is the index minus food and fuel. If we remove those, core inflation is up to 4.6%, the highest since October 2014. This is important because in October 2014, crude crashed. That took a lot of prices down.… (Read On…)
[via Capital MindCapital Mind]
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