Meanwhile, core inflation which excludes certain volatile food and energy items to better capture underlying price
pressures increased to 1.
consumer prices fell again in September, recording their biggest drop in eight months as gasoline costs fell, the government reported Thursday, but a steady increase in underlying price
pressures should calm concerns that a disinflationary trend was re-emerging.
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For many categories of tracked items, however, including 'meat, fish and animal products', 'grains and flours', 'milk and milk products' and 'sugar, sugar products and honey', price gains were still observed - signalling underlying price
IN THE last one year gold, represented by Gold Exchange Traded Funds ( which track the underlying price
of gold), has been the worst performing asset class compared to its peers.
Chris Williamson, chief economist at Markit, said the figures "raise questions over whether the underlying price
pressures are really picking up to the extent that the Bank of England is anticipating".
Aside from the Greek deal uncertainties, a drop in the underlying price
of oil on over-supply worries, after a deal was finally struck with Iran to lift sanctions in return for curbing its nuclear programme, also kept markets subdued.
Average price increases have been proportionately less for larger car types, more typically reflecting underlying price
inflation for new cars, rather than the introduction of more luxurious versions.
Rent inflation has slowed in recent months in line with QNB projections, tracking movements in the underlying price
Another possible reason is related to monetary policy, which may have increasingly focused on underlying price
developments rather than the transient factors affecting CPI inflation.
Last week's European Central Bank report shows underlying price
pressures in the euro area are expected to remain subdued over the medium term.
1 per cent, further proof that underlying price
pressures are benign.