“The U.K.’s economic policy puzzle just got harder. Inflation was expected to rise in December, but not by a full percentage point to 2.9%. That is well above market expectations of 2.6% and the Bank of England’s forecast of about 2.7%. It certainly puts the kibosh on any extension of quantitative easing beyond February, no matter what the growth figures show.” Read more.
“The U.K.’s Persistent Inflation Problem”
The Wall Street Journal, January 20, 2010.