CPI To Remain Low, But Pressures Are On The Rise

We continue to see only a moderate pick-up in price growth going forward, with consumer price inflation (CPI) ending 2009 at 1.8%, up from 0.5% in September, as base effects become increasingly unfavourable and monthly inflation rates remain in positive territory. Going into 2010, we expect CPI to remain subdued, ending the year at just 1.8%, before rising to a modest 2.1% in 2011.

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