THE persistent overshoot of UK CPI inflation above the government's 2 per cent target has started to raise concerns that price pressures are becoming entrenched. In 19 of the past 27 months, annual CPI inflation has exceeded the market consensus expectation, suggesting the models adopted by the economics community have failed to fully capture the current dynamics driving UK inflation or its measurement.In June, the annual CPI rose by 3.2%, the eighth consecutive month it has been above the 2 per cent target. Other key measures of ......for the full story register now for free or login below...