Yikes...
June's inflation figures are out - and they really aren't pretty reading.
CPI up to 3.8%, RPI at 4.6% - these aren't good figures. The blurb blames rising food prices and travel costs - which will at least allow the Government to continue their disingenuous blaming of the nation's ills on vague and ill-defined foreign problems. But the problem is that the Bank of England's remit is to restrain inflation, even though, with a stagnating economy, the requisite rise in interest rates is the last thing we need. Interesting times....
posted by Tim J at
11:17 am
3 Comments:
This is what will happen when you're currency slumps as much as ours has. How the media generally have avoided talking about this defeats me, but so far they have and have let Gordon off the hook.
That's true - sterling has depreciated by about 13% in the past year. With a heavily import-based economy, input prices are inevitably going to rise...
Interest rates have to go up. I don't like it but we'll have to accept it.
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