What is keeping inflation sticky?
When it comes to explaining how inflation beds in, I like to think about yogurt prices. There's a luxury yogurt that I absolutely love - it was 55p, then it went to 85p, and now it's £1.05. On one level, I'm thinking: "It's the same content, if anything they've reduced the volume of the goods inside and just jacked up the price." But, does that stop me from thinking "ah, this is a treat"? I might reduce the number I buy in a week, but I still gravitate towards it.
