Monday, June 09, 2008
More inflationary news
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The producer prices numbers were predictably bad, with both the input and output series at new records. Output price inflation jumped to 8.9% while headline input price inflation was an astonishing 27.9%, even ahead of last week's surge in oil prices, only partly reversed this morning. Even core output price inflation was 5.9%. Details here.

If you're at the Bank of England and faced with numbers like this, you have to close your eyes and think it is just a blip. The alternative is too awful to contemplate.