CPI Inflation

CPI Inflation

 

When looking at Headline CPI Inflation, we take the monthly changes in prices and compare monthly price changes with historical levels of GDP growth. 

This allows us to analyse normal levels of monthly inflation that matches to normal levels of GDP. We can, therefore, identify when changes in monthly prices deviate outside the bounds of normality and signals inflationary or deflationary conditions.

 

We take a rolling 12 months average of monthly Core CPI inflation and match it against levels of GDP.