Inflation

Henderson chief economist Simon Ward believes the Bank of England must stop ignoring strong UK inflation and raise interest rates.

Mike Riddell, a member of the highly-regarded M&G bond team, highlights the worrying aspects of June's inflation 'fall'.

UK inflation dropped for a second consecutive month to 3.2% in June, driven by falling petrol and clothing prices, according to the Office for National Statistics (ONS).

PIMCO has warned the global economy faces the threat of rising inflation, driven partly by central banks using it as a solution to fiscal deficits.

The consumer price index (CPI) of inflation eased in May to 3.4%, down from 3.7% in April, according to the Office for National Statistics (ONS).

No one should fool themselves into believing that Britain can inflate its way out of its public debt mountain, the Bank of England's deputy governor has warned.

Annual inflation in the Organisation for Economic Co-operation and Development (OECD) area remained stable in April at 2.1%, although food and fuel prices rose.

The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England governor Mervyn King to write to new Chancellor George Osborne to explain why.

Bank of England governor Mervyn King yesterday set out his reasons for the overshoot of CPI inflation last month in a letter to new Chancellor George Osborne. They were all dubious, says Henderson chief economist Simon Ward.

While there is sure to be some heavy criticism coming from the media and other commentators about the apparant ineptitude of the MPC to correctly forecast near term inflation, spare a thought for Mervyn King.