We’ve got some CPI figures for May. They are looking a little higher than we anticipated, actually at 2.2%. Now of course the government’s target is 2%. So these are a little bit higher. We were expecting them to be slightly lower than that mainly because there has been a little bit of downward pressure recently. Energy prices have been cut, er, also the food prices are increasing at a slower rate than we anticipated. But obviously there is a bit of upward pressure too, and that’s clearly coming through in these figures because they are a little bit higher than we thought. And that’s mainly from energy, from petrol prices at the pump. Now often when you see oil prices go up, there’s about a 6-week lag before it hits the pumps. But obviously that is affecting things.

And also the cost of clothing and footwear is also a supporting factor that’s increasing this CPI statistics. Now of course the CPI is the government’s measure of inflation, there is of course RPI as well, and that takes into account housing costs and also mortgage interest payments. And that rate, we understand is 1.1%, that’s a little higher than we anticipated too. We are expecting that figure towards the end of the year to decrease so we get further deflation. But at the moment, it seems to be quite supported hanging around the government’s targets, so they won’t have to write to the chancellor and let them know that there is any kind of issue there, so very much where we anticipated that it would be.

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