The subdued 0.1% m/m gain in core consumer prices last month was in part driven by falls in clothing and used car prices, which may be reversed in the coming months. But the bigger story has been the slowdown in unit labour cost growth, which we think will keep core inflation on a downward trend.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services