Bank of England Governor warns that Britons face higher inflation for longer

[AtW]

British consumers shopuld prepare for lingering higher inflation, the Bank of England Governor has warned, as latest figures show a sharp jump in food prices.

Figures from the Office for National Statistics showed a 3.4pc increase in the cost of food over the last year, with fruit being 10pc more expensive. The last year also saw a sharp rise in the cost of travel, which climbed an average 7.8pc.

Mervyn King, the Bank's Governor, voiced surprise that prices are higher than he had expected (AtW's comment: oh FFS Mervyn, resign already if you can't do your job properly.) in a letter of explanation to the Chancellor George Osborne. While the overall consumer prices edged down to 3.1pc from 3.2pc in June, it remains above the Bank's own 2pc target, and the small decline will do little to ease the fear of some economists that a high cost of living will undermine Britain's fragile recovery.

More: Bank of England Governor warns that Britons face higher inflation for longer - Telegraph

[Mich the Tester]

After a brief study of that graph, I would say there’s a 50% chance of the next movement being downwards, which is quite a strong chance if you think about it.

[lilelvis2000]

thanks, as if I'm not down enough in the dumps. You go and tell me the withered pound is worth even less and the pitiful standard of living we already have is going to get worse.

[HairyArsedBloke]

Look at Chart 3 from the Inflation report of last week

The BoE doesn't have a fracking clue where inflation is going.

[Mich the Tester]

Look at Chart 3 from the Inflation report of last week

The BoE doesn't have a fracking clue where inflation is going.

At least they're honest; I don't believe anyone really has a clue where it's going.

[doodab]

It will get worse before it gets better. That's if it ever gets better.

[sasguru]

I'm constantly baffled by what our "best and brightest" say.
It has long being acknowledged that "printing money" or increasing liquidity leads to higher inflation.
So why is this such a surprise to King?

[Mich the Tester]

Permission to say DOOM ?

[AtW]

So why is this such a surprise to King?

It's not a surprise to him.

[TimberWolf]

It's a charade in which we are bit players. Merv plays his part well. Ooh, what a surprise, inflation is higher<surprised look>. Do we have to shout "he's behind you" at some point?