Wednesday 15 June 2011

High inflation could have 'diastrous consequences' for UK, economists warn - Telegraph

High inflation could have 'diastrous consequences' for UK, economists warn - Telegraph

The warning that high inflation could be without beneficial effects, from Capital Economics, came as the Office for National Statistics published the latest data for May. The consumer prices index (CPI) was unchanged at 4.5pc – its highest level since September 2008 and the 17th consecutive month the rate was more than a percentage point above the Bank's target.

May's unchanged figure masked big annual rises in food prices as transport costs fell sharply month-on-month due to the timing of the Easter holidays.

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