Saturday 30 December 2017

Year-on-year inflation

UK CPI year-on-year inflation hit 3.1% in November, and is predicted to be at a similar level for December. Part of an EU trend no doubt? Well no, as you might have guessed from the BBC's omitting comparative figures from its reports earlier this month. I extracted these figures for 2017 from http://www.inflation.eu/inflation-rates/

Month     CPI inflation in France   Estonia    Italy         UK
January                              1.34%     2.76%   1.00%    1.91%
February                            1.21%     3.41%   1.61%    2.30%
March                                1.15%     2.82%   1.41%    2.30%
April                                  1.17%     3.18%   1.91%    2.69%
May                                   0.81%     3.33%   1.40%    2.89%
June                                   0.69%     2.91%   1.20%    2.68%
July                                   0.72%      3.57%   1.18%    2.58%
August                              0.90%      3.93%   1.20%    2.87%
September                        0.99%      3.67%   1.10%    2.97%
October                            1.06%      3.78%   1.00%    2.96%
November                        1.20%      4.24%   0.90%    3.16%

Italy has a similar economic mix to the UK. France by some measures has just overtaken UK in the table of richest nations. I have included Estonia as the only other EU nation where CPI was consistently above Britain's. However, it should be pointed out that this is a small and still fast-growing economy, exceeding 4% GDP growth in each quarter so far in 2017. UK did not reach 1% in any of those quarters.


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