Posts Tagged ‘Inflation’
UK inflation finally came out on a new record high today. Consumer Price Index annual inflation exceeded the target of the Bank of England was set at 2.0%.
September CPI rose 5.2% over the same month in 2010 ago. Inflation also rose compared to the annual level reached in August, which is 4.5%. Times the rate of inflation is similar to the record reached in September 2008, the national statistical agency reported the UK.
The monthly inflation rate rose 0.6% in September or exceed analysts’ forecasts (0.4%). While expectations for annual inflation was 4.9%. Gas and electrical components into components of the highest contributor to the increase. Monetary authorities last month has just imposed a more quantitative easing with the expectation that inflation will fall in coming months.
Sterling fell after the rise in UK inflation failed to reassure investors that the Bank of England will reduce asset purchase program. Annual consumer price index rose to a record 5.2%, higher than forecast 4.9% and 4.5% the previous publications.
“In the short term, inflation would still increase; but we also know in the long run the Bank of England believes that there is the threat of deflation,” said Simon Derrick, strategic Bank of New York Mellon. “The idea of sterling would be fostered by the monetary policy outlook post-spike in inflation is too excessive. The central bank will continue to maintain loose monetary policy in the near future and this would have a negative for sterling.”