U.K. annual inflation rate accelerates at record pace @ Forex Factory

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U.K. annual inflation rate accelerates at record pace

British consumer inflation accelerated at a record pace in December, surprising economists and putting inflation concerns back on the Bank of England's radar after exceeding expectations for a big price jump as a result of comparisons with December 2008. The Office for National Statistics on Tuesday said prices rose 0.6% compared to November. Prices were up 2.9% compared to December 2008. That compared to a 0.3% monthly rise and a 1.9% year-on-year rise in November. The one-percentage-point jump in the annual rate between November and December was the largest rise since current records began in 1997, the ONS said. Full Story

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Investica

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Submitted Jan 19, 2010 7:37am

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Investica

232 Comments

110 Votes Cast

The data will increase stress levels within the Bank of England. They are rapidly heading for a no-win situation.

Tighten policy early to contain inflation and trigger a renewed downturn or resist tightening and risk losing medium-term credibility over inflation.

This is not a bullish scenario for Sterling