RE: Unexpected fall in UK inflation in August20 Sep 2023 10:16
""A note of caution however arises from two sources.
In the markets for crude oil, prices are rapidly rising again (see below) which is affecting prices at petrol pumps, and will add to inflation in the coming months.
And also from the IMF, which has just released an in-depth study of the experience of the 1970s energy shocks.
The bottom line is this - countries have a tendency for “premature celebration” - thinking that inflation is defeated, when it is only taking a breather.
The end result was inflation remained higher for longer back then. It fears something similar now.""
DYOR