Tuesday, June 13, 2006
King warns of turbulence, inflation ticks higher
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Mervyn King, in his speech in Scotland, one of a small number of "major" speeches on the economy he makes each year, warned of turbulent times ahead. King is worried about global inflationary pressures and the vulnerability of asset markets. He was not, however, noticeable hawkish on UK rates. Read his speech here.

Meanwhile, UK inflation figures showed the expected rise in consumer price inflation from 2% to an above-target 2.2%. RPI inflation rose from 2.6% to 3% and RPIX from 2.4% to 2.9%. This was an across-the-board increase in UK inflation. Details here.

Comments

I see the Independent have something to say about official inflation figures today:

http://news.independent.co.uk/business/analysis_and_features/article890830.ece

I think it's very possible that the MPC will stop targeting inflation soon to prevent a rate rise and the accompanying effects on the UK economy.

Posted by: Terry at June 13, 2006 06:46 PM