BOE King: CPI To Move Above 3%; Return To Target Medium Term @ Forex Factory

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BOE King: CPI To Move Above 3%; Return To Target Medium Term

UK inflation is set to move above 3%, and maybe higher still, but should return to its 2.0% target in the medium term, Bank of England Governor Mervyn King said Tuesday. In the speech at Exeter University, King restated his call for the government to set out clear plans for deficit reduction. He also said the UK economy was likely to return to growth soon, although unemployment would remain high, and warned that the economic data in coming months was likely to be very volatile. King's comments came after the latest consumer price data showed headline CPI surging to 2.9% on the year in December from 1.9% in November, the largest month-on-month rise in the yearly rate on record.... Full Story

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