“Inflation in the U.K. hit 3.5% annually in January, a level that required central banker Mervyn King to write a letter of explanation to the Treasury. Mr. King lays the blame for the price uptick largely at the feet of idiosyncratic factors. These include the Jan. 1 increase in the VAT rate to 17.5% from 15%; rising energy prices (although core inflation was also north of 3%); and the weakening pound.” Read more.
“Stagflation Comes to the U.K.”
Opinion Europe
The Wall Street Journal, February 17, 2010.