Inflation: Some cause for optimism despite fastest price rises since 1970s

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Inflation: Some cause for optimism despite fastest price rises since 1970s
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'The scourge of inflation has not yet been defeated but there are reasons to be hopeful.' Sky's gurpreetnarwan gives her analysis 👇

Wholesale energy prices will continue to feed through to gas and electricity prices and global agricultural commodity prices have stabilised, which should offer some respite at supermarkets., which shows that inflationary pressure in the jobs market is also subsiding.

The Bank of England, like its counterpart in the US, has been keeping a very close eye on this as it fears that firms may put up their prices to fund pay rises, fuelling more inflation. However, the latest figures suggest that the momentum here has also peaked. Samuel Tombs, its chief economist, said:"Core goods CPI inflation should fall sharply as retailers pass on some of the savings from the collapse in shipping costs, and cut prices to shift excess inventory from their balance sheets.

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