The CPI data out yesterday were not good news.
Annual headline inflation was, more or less as expected, down, but at around 6 per cent is miles from the 2 per cent target midpoint the Reserve Bank’s MPC has been required to focus on delivering. Much more importantly, core inflation measures show little or no sign of any reduction.
Six months ago I had been intrigued by this chart
It looked as though a reasonable case could then be made that core inflation had peaked a year earlier and was now falling (albeit still far too high).
But jump forward to today and the chart now looks like this
If it still suggests a peak at the start of last year (at least on one of the measures), it is no longer a picture of (core) inflation falling now. (NB: You cannot put much weight on the absolute level of…
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Utopia, you are standing in it! 
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