He said NIESR's own
underlying rate of inflation, which excludes the most extreme price movements, climbed 0.3 percentage points to 0.8 per cent.
"The
underlying rate of inflation has slowed considerably and Australia's CPI rates are finally starting to look more like its developed market peers.
This is said to be a temporary effect that indicates an
underlying rate of inflation closer to 2%.
Looking through this temporary effect suggests an
underlying rate of inflation closer to 2 per cent.
Chief executive Ray King said a minimum for the industry must be fee rises linked to the
underlying rate of inflation.
The
underlying rate of inflation increased from 5.7 percent to 6.0 percent between September 2006 and October 2006.
Although inflation rates had risen, the
underlying rate of inflation (which strips out volatile components such as seasonal food and energy costs) had remained low and, so the reasoning went, in time the higher headline rate would fall towards the underlying rate.
The
underlying rate of inflation as measured by the UND1X, which excludes mortage interest cost and changes in indirect taxes and subsidies, was 1.1 percent in November.
The CBI have made a point of looking at rises to the NMW in percentage terms, 4.1 per cent this year, which is ahead of the
underlying rate of inflation.
However, it is ahead of the
underlying rate of inflation, running at around 2.1% excluding mortgage costs, even though Chancellor Gordon Brown has ploughed extra cash into town hall budgets.
The
underlying rate of inflation fell 0.1pc to 2.8pc last month, official figures showed today.
The
underlying rate of inflation is expected to rise to around three per cent today, although economists expect the figure to run at below its 2.5 per cent target in the medium term.
