Thursday, January 7, 2010
Shhh! Wait till after the election!
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.