Inflation Increase
Published / Last Updated on 17/05/2010
by Ashley Clark, Director
The Governor of the Bank of England, Mervyn King will today have to write his first letter to the new Chancellor of the Exchequer, George Osborne to explain why the inflation increase is almost double it’s 2% target at 3.7%.
Our View: This is the highest inflation increase since 2008 and seems to be out of control. Higher petrol prices have definitely had an impact and we can expect more rises to come. It is usual for the Bank of England to raise interest rates in situations such as this but it could just push the economy over the edge and back into recession.
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