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UK Inflation no problem for Governor Carney

By Premier Pension Solutions SL - Sun 21st Jul 2013

UK CPI Inflation rose pretty much in line with consensus forecasts, coming in at 2.9% in June, up from the 2.7% in May.

By narrowly missing 3.0%, the new Governor of the Bank of England, Mark Carney, is spared having to write to the Chancellor of the Exchequer as one of his first tasks in the new post. Inflation has been creeping up since autumn last year as consistently high prices for oil have inevitable knock on effects to non-core items measured by CPI. As crude looks set to peak for the year, economists are already starting to forecast a gradual decline into year-end. It is clear to most people that living in the UK has one up over the last 18 months but the fine summer weather may produce a boost to consumption keenly awaited by struggling retailers.

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