High CPI largely due to one-off factors

“While the 3.8 per cent increase in the CPI for the year to the end of June 2021 appears high, it is to a large extent due to the reversal of some deflationary forces of a year ago,” Innes Willox, Chief Executive of the national employer association Ai Group said today.

“The more robust indication of consumer prices is that the CPI rose by 1.9 per cent in the five quarters from March 2020 to June 2021. This is a more reliable benchmark for businesses considering any wage or price increases,” Mr Willox said.

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