Tuesday, February 13, 2007
UK inflation rate falls to 2.7%
Britain's inflation rates eased more than expected in January after hitting an 11-year high in the previous month. The Consumer Prices Index fell to 2.7% from 3%, according to the Office for National Statistics (ONS). The Bank of England has raised interest rates three times since August in a bid to bring inflation down to a 2% target. "This is a much more benign set of inflation data than expected, which will be of major relief to the Bank of England," said Howard Archer, an economist with Global Insight.
Read the full story at: http://news.bbc.co.uk/1/hi/business/6355979.stm
The Bank of England has in recent months increased interest rates in an attempt to prevent the UK economy "overheating", and, although other factors (such as falls in food, transport and wholesale gas prices) also have had a part to play, their actions look to have succeeded in preventing inflation from going above the symbolic 3% threshold.
The much acclaimed new interactive learning package LiveEcon can help you understand the economics behind these important policy events. The operation of monetary policy is examined in chapters 6 (tutorial 3) and 11 (at principles and intermediate level, respectively). Find out how to get LiveEcon at www.liveecon.com Download this blog as a Blogcast via the website.
Britain's inflation rates eased more than expected in January after hitting an 11-year high in the previous month. The Consumer Prices Index fell to 2.7% from 3%, according to the Office for National Statistics (ONS). The Bank of England has raised interest rates three times since August in a bid to bring inflation down to a 2% target. "This is a much more benign set of inflation data than expected, which will be of major relief to the Bank of England," said Howard Archer, an economist with Global Insight.
Read the full story at: http://news.bbc.co.uk/1/hi/business/6355979.stm
The Bank of England has in recent months increased interest rates in an attempt to prevent the UK economy "overheating", and, although other factors (such as falls in food, transport and wholesale gas prices) also have had a part to play, their actions look to have succeeded in preventing inflation from going above the symbolic 3% threshold.
The much acclaimed new interactive learning package LiveEcon can help you understand the economics behind these important policy events. The operation of monetary policy is examined in chapters 6 (tutorial 3) and 11 (at principles and intermediate level, respectively). Find out how to get LiveEcon at www.liveecon.com Download this blog as a Blogcast via the website.
# posted by Sam @ 17:39 
