Monday, January 31, 2011

Forex news GBP:Growth is expected British inflation is not surprising

It is not surprising to see further growth in inflationary expectations in the UK, research YouGov / Citi said the growth of expected inflation for the year from 3.5% to 3.6%. In fact, you could say that this is a good result, given the headlines about the rise of VAT in January, has grown along with the price of fuel. Expected trends after the study is best correlated with inflation over the last month that it was appropriate, given that the CPI data are published with a delay of several months. In other words, it may not surprise anybody, but the greatest impact on inflationary expectations, providing the current level of inflation.

Thus, we can say that the Bank of England should not worry about rising inflationary expectations, given that they largely reflect the current high inflation. Like many others, you can in this situation, just watch. Currently, there are few real signs that earnings are going up, average weekly earnings rose by about 2% - half of the 4% rate recorded in the period between 2005-07. Pricing now - it's more the prerogative of corporations. That's where there is great danger in the coming year, as high inflation is increasingly taking root.

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