Friday, June 13, 2008

Mervyn has his pen and paper at the ready

King could be forced to pen historic first inflation letter within days

New Star Asset Management's chief economist, Simon Ward, has predicted that the Consumer Price Index (CPI) for May could breach 3% when figures are released next week, forcing the governor of the Bank of England, Mervyn King, to write a letter to the Chancellor. Commenting before the latest consumer price index (CPI) report is published on Tuesday, Ward said although CPI of 3.1% was not a done deal, he would be 'surprised' if upward pressure from food, fuel and import cost rises did not take the figure to such a level. He said: 'Governor Mervyn King will already know whether the annual increase reached the 3.1% letter-writing level. Recent news suggests it did, which may explain the lack of any discussion of monetary policy in Mr King's speech to the British Bankers Association this week.'

Posted by jack c @ 11:58 AM (853 views)
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5 thoughts on “Mervyn has his pen and paper at the ready

  • That first letter to the Chancellor happened over a year ago when CPI reached 3.1% in April 2007

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  • It wouldn’t be the first letter – CPI hit 3% last year at one point I remember and they wrote to Gordon Brown who was still chancellor at the time.

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  • It wont be the last time this year. Maybe with future letters Mervyn could just cut and paste the original letter and change the date.

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  • Even the dodgy CPI figures are showing inflationary trends (real inflation is at 9%)

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  • gardeniadotnet says:

    It has been reported that Mervyn, a totally clued-up geezer, has actually decided to text rather than use snail mail:

    yo! gord. inflation up – oh yeah, u know doncha cos its yr fault! ha ha.whatever. l8r.merv.

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