The chart below is the movement of two measures of inflation in the U.K.

As you can see they move in the same way with the light blue line moving either up or down faster than the dark blue line (which lags it).

PPI is the measure of Producer Prices, a monthly survey of the changes in the price of goods bought and sold. At the peak this was above 11% and is now down at around 2% so near pre-pandemic level on average.

The CPI (dark blue line) measures the increase in prices consumers are paying and is still up above 8% but will follow PPI down and quickly.

So yes, consumer inflation in the U.K. is still very high, but if the chart below holds true – not for much longer.

Note: This is written in a personal capacity and reflects the view of the author. It does not necessarily reflect the view of LWM Consultants. The post has been checked and approved to ensure that it is both accurate and not misleading. However, this is a blog, and the reader should accept that by its very nature many of the points are subjective and opinions of the author. Individuals wishing to buy any product or service as a result of this blog must seek advice or carry out their own research before making any decision, the author will not be held liable for decisions made as a result of this blog (particularly where no advice has been sought). Investors should also note that past performance is not a guide to future performance and investments can fall as well as rise.