Brittan getting a whiff of stagflatoin

http://www.telegraph.co.uk/finance/economics/interestrates/7245356/Inflation-expected-to-rise-above-Bank-of-England-target.html

With inflation rising and wage growth stagnant, each pound families are paid is going comparatively less far Photo: SARAH BROOK

The rise would raise further concerns about a decrease in Britons' living standards.

The Bank of England Governor, Mervyn King, has already predicted that the Consumer Price Index is likely to exceed 3pc when figures are published on Tuesday, forcing him to write a letter of explanation to the Chancellor. However, economists said that the scale of increase for the CPI could be greater even than most expect. They said that it is likely to hit 4pc at some point in the coming months.

Did you even read the whole article? Clearly not becaus it says

"John Hawksworth, head of macroeconomics at PricewaterhouseCoopers, said: "We expect headline CPI inflation to rise to around 4pc in January 2010 as petrol price falls in late 2008 fall out of the annual inflation rate calculation and due to the effect of VAT going back up to 17.5pc from 1 January. But this will be a temporary spike and we would expect inflation to be back down to its 2pc target rate by the end of 2010 and to remain at or below target during 2011."

The economist also says riversider is wrong. I am going to go with PWC and the Economist on this one.

"The immediate surge reflects in particular the impact of restoring the main rate of VAT (value-added tax), which returned on January 1st to 17.5% after 13 months at 15%. Inflation will then fall back even though the economy is expected to recover quite strongly, because so much spare capacity has opened up during the recession."

http://www.economist.com/world/britain/displayStory.cfm?story_id=15501641&source=hptextfeature

Read it. So the economist is suddenly an expert on future World Oil prices. Please!

Dummy, your article, the one YOU posted, says the same thing as the economist...and as what ECONOMISTS (plural) say about the UK. Next time you want to argue a point, at least post a link to a story that AGREES with you, not one that contradicts you.

Riversider, aboutready can make your head spin if you spell something wrong again.

I thought Brittan was my Aunt!