While it's possible that prices fall sharply later on this year, that likelihood diminishes with every month that core inflation remains so high, writes Sky's EdConwaySky. Read his analysis here 👇
Economists predict the rate at which prices are rising will finally begin to fall, and fast. Then the official data comes in and it turns out prices are not falling as fast as predicted. And then everyone gets depressed.Economists thought the headline inflation rate - the consumer price index annual rate - would drop in May from 8.7% to 8.4%.
And all the signs suggest that that is precisely what is happening: what began as a rise in one-off, explicable prices seems to be turning into a stickier phenomenon.
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