big monday, page-81

that is because interest rates have not yet risen enough to have any impact on inflation.

interest rates may yet need to rise another full 1% yet before that really happens.

Also, keep in mind, it takes about 6 months (maybe even a little longer) for an interest rate rise to have its affect on the economy - its not at all an instant thing.

So for example, if for instance the required rate to curb inflation is 10%, and we reach that by April, you won't really notice prices falling much until around October at the earliest - and even then thats approaching the christmas period in which there is a natural increase in demand anyway.

these things take time - macroeconomic changes always do.