British Inflation

[Richard Wilson]

Interestingly, the rate of inflation in Britain reached 3.2% running 12 months, the 4th consecutive month that inflation has been above the Bank of England's target rate of 2.5% and the highest since May of 1998. With the monetary growth running at 6.4% over the past 12 months, one should expect inflationary pressures to grow as increased money supply works its way through the economy. The Economist believes the rate of inflation to be 2.6% this year, I'd expect 3.0% or higher.