The 'headline' CPI figure is made up of 'tradable' inflation imported from overseas (think fuel, for example) and 'non-tradable' domestically-generated inflation. So, it is the domestic inflation that is vitally important - and that's what's looked particularly problematic of late. According to the June 2023 CPI figures, at that time our 'non-tradable', domestic inflation annual rate was 6.6%, while the 'tradable', imported inflation was 5.2%. In fact our annual rate of domestic inflation has now been at 6.3% or higher for five whole consecutive quarters. Is it really all just about the domestic inflation figure though?
