January inflation

I have been monitoring inflation more closely since the borders were closed. The graph shows monthly food inflation for each January since 2009. The record increases from August to November in comparable month-on-month change in food inflation appears to have steadied. It does not mean that prices are falling which they aren’t but it does appear that the shock from the broder closure appears to have steadied for now. Perhaps because the costs of the extra restrictions have been incorporated into prices.

Will still be interesting to continue to monitor prices especially once we get to May and June if the borders are still closed as that is typically when inventory from the last harvest gets very low.