CPI inflation falls below target

The Consumer Prices Index (CPI) measure of inflation fell below the Bank of England’s target of 2% in June, for the first time since 2007. CPI inflation actually fell from 2.2% in May to 1.8% in June.   By far the largest downward pressure on prices came from food and non-alcoholic beverages as prices actually fell between May and June … Continue reading

Posted by Nigel Tree | Comments Off on CPI inflation falls below target

Inflation Targeting: Learning the lessons from the financial crisis

On Tuesday of this week, Spencer Dale, Executive Director and Chief Economist at the Bank of England, used the above title as his talk to the Society of Business Economists, and I will try to summarise his main themes.   He noted that the sudden end to a long period of economic stability has led to the inflation targeting framework … Continue reading

Posted by Nigel Tree | Comments Off on Inflation Targeting: Learning the lessons from the financial crisis