Tuesday, September 13, 2011
How ‘unexpected’ will it be?
Inflation Expected To Hit Three-Year High
The rising cost of utility bills is expected to push the official rate of inflation to a three-year high when figures are released later. Economists predict the consumer prices index (CPI) measure of inflation for August will rise to 4.6%, up from 4.4% the previous month. It would be its highest level since September 2008 when it hit 5.2%. Scottish Power and British Gas raised their gas tariffs in the month, by 19% and 18%,respectively, alongside big increases for electricity.
Posted by little professor @ 08:51 AM (1252 views)
3 thoughts on “How ‘unexpected’ will it be?”
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general congreve says:
But unless people are getting accompanying wage increases inflation can’t go up, right?
ontheotherhand says:
GC, that depends whether one thinks inflation means more money being printed into the system than growth in the economy demands (always and everywhere a monetary phenomenon), or whether one thinks it is about wage expectations and spare capacity conditions (BofE). Hint. Zimbabwe had plenty of spare capacity, but still had lots of inflation. Wage increase demands follow inflation expecations which follow rising prices which follow too much money chasing too few goods.
general congreve says:
@2 – I wasn’t being serious, it was a cheap shot, but thanks for a very concise summary on the matter for the benefit of HPCers. I couldn’t have put it better myself.
Of course, there are those that refuse to accept that the policies that caused inflation in Zimbabwe will have the same effect in the UK, even as it happens before our very eyes.