Daily Archives: June 14, 2011

Chris Giles

It appears from the chart that UK inflation held steady in May, although at much too high a level.

Unfortunately, that is a mis-reading of the data since the rise in CPI inflation in April to 4.5 per cent was a statistical blip caused by the timing of Easter. A constant rate indicates another underlying increase in the rate of growth of the price level.

How worried should monetary policy makers be?  The interesting fact, noted by Simon Hayes of Barclays Capital this morning is that Monetary Policy Makers, regardless of whether they are hawks or doves, say not very worried at all.