Thursday, Jan 07, 2010
Shhh! Wait till after the election!
Daily Mail: Rate hikes looming amid inflation fears
Fears of interest rate hikes intensified after reports showed the UK is running one of the highest inflation rates in the developed world, fuelled by rising energy prices - and that households are braced for further acceleration.
Britain's Consumer Prices Index is the highest in the G7 at 1.9% and nearly quadruple the euro area's 0.5%.
The CPI could leap to 2.8% this month, according to estimates from Henderson Global Investors - in part thanks to widespread increases in prices of commodities including food and fuel.
Posted by little professor @ 10:55 PM (1444 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. paul said...
And how did inflation get so high? The Bank of England studiously ignoring inflation.
2. little professor said...
Stoking, rather than ignoring inflation.
It was a conscious decision to promote inflation, not a side effect. They knew the only way out of the debt-laden mess we were in was to inflate their way out of it, screwing all savers in the process.
Just bought another 10k of index linked bonds. Let's get ready for the ride.
3. nickb said...
Ooh! The UK's inflation rate is a shocking ... wait for it ... 2%!!! In case anyone hadn't noticed there is still a credit crunch on, which means low demand. Energy prices are rising but they are rising all over the world. Perhaps here they are more directly passed on to consumers because of the horrible everything-for-big-business ideology of our government? The UK govt is not doing anything to inflate and here is why
http://blogs.ft.com/maverecon/2009/09/what-can-be-done-to-enhance-qe-and-ce-in-the-uk-and-who-decides/
all it is doing is keeping interest rates low to try to avoid a housing market collapse via distressed sales before the election.