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Early signs of (dis)inflation continue to appear
Whilst it is the annual rate of change (yy) that central targets monitor, any healthy change in the annual rate should first occur at the monthly rate (mm). It is therefore worth noting that some metrics of inflation have either seen the monthly reads rise at a slower rate or even contract (deflate). This also coincides with some measures of annualised inflation pulling back. A host of inflation data was released for the UK and Canada today, and there are some promising signs. UK producer input prices slowed to 1.8% m/m, which is the third consecutive month of disinflation (slower rate of growth). Core CPI also ... (full story)