It looks like the annual rate of headline CPI inflation peaked at 3.6% in June, but core inflation edged up to 1.6% last month, from 1.5%, and will continue to climb over the next few months. By the end of this year both headline and core inflation will be at about 2.5%. Eventually we expect a lot of the pick up in core inflation to be reversed, but that won't happen until early next year.
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