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Bailey asked if the BOE are slicing the inflation data to support a narrative

BOE
  • Bailey says one of the dangers is slicing things so much you lose the big picture - hoping to avoid that. Regulated / indexed prices - e.g. Mobile phone bills going up by RPI + X% - have their own dynamic. Should expect those to adjust accordingly when next reset. Hotel prices are adjusted much more frequently e.g. Through dynamic pricing. Sensible to look at all of those individually and then put back together.
  • Lombardelli adds its important to look also at the direction of the data - and judge whether it moving in the way that is expected.

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