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.
Larry Summers, a Keynesian economist who served for 5 years last decade as President of Harvard and was up until late-2010 director of President Obama's White House National Economic Council, just said last week that, "the
underlying rate of inflation is still trending downwards".
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 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.
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.
HOPES of another cut in interest rates rose last night after official figures showed a fall in the
underlying rate of inflation.
Figures from the Office of National Statistics showed the
underlying rate of inflation rose by 0.
Average house prices in the United Kingdom are estimated to have gone up by about 11per cent, whilst the
underlying rate of inflation hovers around two per cent.
THE
underlying rate of inflation rose slightly last month after an increase in food prices, new data showed today.
