Inflation a matter of hope and wait

Professor Christoph Schumacher
National Business Review
13 February, 2023

The December 2022 inflation figures are out, and the news is not particularly good. While most bank economists expected annual inflation to fall in Q4, it remained at 7.2%, so inflation has plateaued rather than decreased.

Looking at the quarterly inflation rate (the change from Q3 and Q4), the news is even worse as inflation rose by 1.4%. Right at the top of the list of items for which we must dig deeper into our pockets are accommodation services (up 4.7%) and, unsurprisingly, meat, poultry, fish (up 4.2%) and grocery food (up 3.3%). We are also paying more for entertainment and culture, with recreational equipment prices up 3.5% and cinema admission charges up 2.4%.

 

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