Tuesday, August 14, 2007
The Telegraph is slightly confused today.
The article states one positive factor, slightly lower CPI, concludes that IR's will not rise, then goes to summarise all the pipeline inflationary pressures that are heading our way. The conclusion does not match the analysis, so, a goodish article, rediculous title and conclusion. If inflation goes down to just 2.3%, then we may well be needing 6.25% rates soon, because, as the article mentions, higher energy costs are now starting to feed through, just as last autumn's energy price deflation starts to fall from the stats. Anybody reckon inflation could start to rise again by mid autumn? I certainly think its a distinct possibility.