Yeah it’s higher than energy, correct. But not stupidly high.

Forecasters expect core CPI, which excludes energy and food prices, to stay at around 3.5 per cent and services CPI, which measures items such as rail tickets and hospitality costs, to drop a little, with Deutsche Bank and Pantheon Macroeconomics saying it could go from 5.7 to 5.5 per cent.

“Positive base effects, mainly from energy prices, will likely push headline inflation higher through the second half of 2024. But there is good news. Services inflation, we expect, should continue its descent – albeit gradually,” said Sanjay Raja of Deutsche Bank Research.