Don't they just hate it. "Rate rise expectations dashed as annual growth comes in at 2.7 per cent." That's the one line summary of the inflation figures by those financial market boffins over at Business Spectator. Expectations dashed! What kind of sadists are these financial market types? I prefer to put a different spin on it every time inflation is below the level the dreaded market expects. Something more like: good economic news as inflation remains under control. And under control it certainly is.

25-01-2011cpi

The All Groups CPI rose 0.4% in the December quarter 2010, compared with a rise of 0.7% in the September quarter 2010. The through the year rise to the December quarter 0f 2.7%, compared with a rise of 2.8% through the year to the September quarter 2010.