Wednesday September 03, 2008

UK : British inflation rate soars to 16-year record high of 4.4%

channelnewsasia.com :

The British annual inflation rate for July 2008 grew at 4.4%, the fastest pace in 16 years as food prices surged, scuppering hope of an interest rate cut to spur flagging growth. The figure marked the fastest annual rate since April 1992. The Bank of England froze British interest rates at 5.0% for the fourth month in a row as it sought to contain surging inflation amid slowing economic growth. Britain's economy is close to a recession after slowing further during Q2 2008. GDP grew by only 0.2% from Q1, the slowest pace of economic growth for more than three years. These figures mirror gloomy economic data for the Eurozone and United States. Analyst Archer warned that consumer price inflation was set "to go significantly higher still over the coming months, despite the recent retreat in oil prices. Indeed, it could well reach 5% in October, as sharply rising utility bills, elevated food prices and a weaker pound impact."

- There seems to be a spate of reports nowadays on how the European economies are weakening, how the euro itself is weakening, and how inflation is rising in the Eurozone. Jim Puplava was right on the money about how the euro would be the next currency to get into trouble, as the European economies slow down and inflation rises at the same time - which by the way is the classic stagflation scenario.

See also :

1. Europe inflation hits record 4% in June 2008; Germany, France inflation rate at 15, 17 year highs
2. UK beer prices may rise 60% in 2008 : Financial Times
3. Peak oil to hinder world development - UK lawmakers

(2008-09-03 17:45:19 SGT) [Biz] Permalink

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