UBS On-Air: Paul Donovan Daily Audio 'Pricing and profits'

UK inflation was as expected. Where consumer spending has weakened, inflation rates have been falling - as with the US, durable goods like used cars and consumer electronics are in disinflation or deflation territory. Food prices were a big driver of inflation. In the UK, food is not food, food is mainly labor cost. Wages have been rising less than 8 percent for food production, and retail. This might raise questions as to why food prices are rising almost 15 percent.