Inflation sees its biggest monthly increase in 8 years
18 Jan 2011 [0 Comments | 111 views]
CPI annual inflation – that’s the version of inflation the Bank of England is supposed to target and maintain at around 2 per cent, hit 3.7 per cent in December, up from 3.3 per cent in November. RPI annual inflation was 4.8 per cent, up from 4.7 per cent in November. Is it time for [...]
Inflation fears rise, as economist tells Bank of England to hold its nerve
17 Jan 2011 [0 Comments | 199 views]
There was bad news on inflation last week, pretty much across the board. There was bad news in Europe, the US and the UK. David Cameron seems to have signed up to the hawk camp, fretting about rising prices and the plight of savers. But the fearmongering is Mickey Mouse economics. In the US, data [...]
Inflation may be up, but the money supply is still contracting
6 Jan 2011 [0 Comments | 258 views]
You may recall, this column has often questioned the assumption that quantitative easing (QE) will lead to inflation. The assumption has been that QE will lead to a rise in the money supply, and that this will lead to price hikes. The fact that inflation is remaining stubbornly above target seems to provide evidence to [...]
Velocity matters so is the money supply really in such a state?
2 Nov 2010 [0 Comments | 478 views]
Maybe all this talk about the contracting or anaemic growth in broad money supply is hogwash. The last few days have seen a number of theories advanced suggesting that we are spending money at a faster rate, and that the rise in the velocity of money circulation is overcompensating for the fall in broad money [...]
Inflation defies doves yet again
15 Sep 2010 [1 Comment | 551 views]
The last week or so has seen the release of the latest set of stats relating to inflation: so that’s producer prices, shop price and food inflation, the consumer price index and, this morning, average wages. At first glance, the data, or at least some of it, will have Hawkman screeching out for hikes in [...]
Does inflation practice to deceive?
17 Aug 2010 [0 Comments | 334 views]
The set is complete. This morning saw the latest inflation figures for the UK. With data for the US, Europe and China already out, it seems that the beast called inflation really can’t make up its mind. Part of it seems determined to strike with venom, another part remains firmly curled up in its cave. [...]
We have not gone soft on inflation says King
11 Aug 2010 [5 Comments | 2,237 views]
We have not “gone soft on inflation,” said Mervyn King this morning as he unveiled the latest Bank of England inflation report. He sounded a tad like Queen Gertrude in Shakespeare’s Hamlet when she said: “The lady doth protest too much, methinks.” The fact is, over the last 51 months inflation has been over target [...]
Bank of England set to give warning
9 Aug 2010 [0 Comments | 248 views]
This week the latest Bank of England inflation report will be released, and this time around fireworks are expected. The hawks are swooping, and their squawks are likely to become even louder this week. These days the UK central bank’s forecasts for inflation are nearly always wrong. But this time around the bank is expected [...]
Will the US government inflate its way out of debt hell
6 Aug 2010 [0 Comments | 488 views]
Will the US government inflate its way out of debt hell? Capital Economics has asked this very question, and its answer may surprise you. But before we look at the question of inflating away debt, first, how bad is US government debt likely to be? How is your hair? Make sure it’s held on tight, [...]
Food inflation threatens to return
4 Aug 2010 [0 Comments | 242 views]
The British Retail Consortium (BRC) had some good news yesterday. Non-food inflation seems to be in the midst of a rather deep dive. But the news on food is not so good. More worryingly still, the price of wheat seems to be heading for the stratosphere. According to the BRC, non-food inflation fell at an [...]
