Monday, March 3, 2008

UK Inflation

"For months, economists have fiercely debated the path of UK inflation. As usual, the vast majority have dismissed concerns about price pressures as 'historic' and 'academic'. ... Determined to push the Bank of England into further interest rate cuts, 'doveish' analysts in the City and elsewhere have said that inflation poses few dangers. ... On Monday, official figures showed factory gate inflation--the price industry pays for goods and services--rising by a staggering 19 percent annually", http://www.telegraph.co.uk/, 17 February 2008.

With 19% UK "factory gate inflation", what is the US's comparable figure? That City "analysts" are doveish is no surprise. How many Wall Streeters are pushing Helicopter Ben to raise short term interest rates?

1 comment:

Anonymous said...

If it is bad here in the U.S. it will be ten times worse in the U.K.. Those poor slobs won't even know what hit them.