UK inflation posts unexpected rise in March

[AtW]

The official rate of annual inflation on the Consumer Prices Index rose to 3.5pc last month from 3.4pc in February according to Office for National Statistics data.

It was the first rise in six months after inflation peaked at 5.2pc in September 2011. Economists had forecast no change from 3.4pc.

The Bank of England and Government had been hoping that inflation would keep falling this year, easing the financial burden on British households and businesses.

The Bank has repeatedly insisted that inflation would fall sharply in the early part of this year and be below the 2pc target by the end of the year.

Sir Mervyn King, the Bank’s governor, is now likely to have to write yet another letter to the Chancellor in May, explaining why inflation is more than one percentage point above the target.

The March rise will be an embarrassment to the Bank’s Monetary Policy Committee, which is expected to actively consider boosting its £325bn quantitative easing programme at its May policy meeting.

Stubbornly high inflation make further bond purchases through QE less likely, given the programme's potential to further fuel inflation.

Source: UK inflation posts unexpected rise in March - Telegraph

Blame this man -

[BrilloPad]

+1

Merv has consistently underestimated inflation. And once QE starts to seep into the economy it will get worse.

[AtW]

Merv has consistently underestimated inflation.

No, he didn't.

To say that he did would mean he is an idiot as well as the rest of the monetary policy committee.

They are not idiots.

[BrilloPad]

No, he didn't.

To say that he did would mean he is an idiot as well as the rest of the monetary policy committee.

They are not idiots.

How well have they done at keeping inflation between 1% and 3%?

I would have done a better job.

[Andy2]

Now this will properly fuel the inflation

Pound Strength Is

[AtW]

How well have they done at keeping inflation between 1% and 3%?

Badly, but that's not because they are idiots - they are very smart people who know exactly what they do but they've used all their experience and authority to keep rates down and print money whilst completely disregarding their main objective - keep inflation within the range.

[d000hg]

+1

Merv has consistently underestimated inflation.

I wonder, is this one of those things where saying "it's bad" makes it worse, and therefore you always have to officially 'expect' an optimistic outcome?

[AtW]

Supreme Chancellor: It's treason, then...

[centurian]

Badly, but that's not because they are idiots - they are very smart people who know exactly what they do but they've used all their experience and authority to keep rates down and print money whilst completely disregarding their main objective - keep inflation within the range.

WAtWS

He knew exactly what would happen - just wasn't prepared to admit it

It's easier to seek forgiveness than permission...

[BrilloPad]

Why can't they just admit that the real inflation target is as high as possible to inflate the debt away?