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Inflation Shocker in the UK: Core CPI Spikes to 30-Year High, Driven by Spike in Services, even as Motor Fuel Prices Plunge
Inflation is infamous for its head-fakes and has a tendency to dish out one nasty surprise after another – at least for observers that keep expecting that inflation will somehow go down on its own. Today, the inflation shocker occurred in the UK. And this is a warning for all economies: inflation has gotten solidly entrenched in services, and is getting even worse. Core CPI spiked month-to-month by a scary 0.8% in May, which translates into an annualized spike of 10%, according to data from the UK Office of National Statistics (ONS) today. Year-over-year, core CPI spiked by 7.1%, the worst since March 1992. Core ... (full story)