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Where is UK's Inflation Rate Going?
Historical & Current Inflation Rate of United Kingdom
This page will focus on inflation related issue in the United Kingdom (UK).
Some of the featured issues are UK's growing budget deficit, the weaker sterling pound currency, and external sources of inflation.
The latest figures from Jan 2011 put its inflation rate at about 4%. This is compared to the average inflation rate of 2.7% for the period of 1990 to 2010. The historical high was 8.5% in 1991, with the recent high of 5.2% experienced during the later part of 2008.
UK's Future Inflation Outlook
- Bank of England | Publications | News | 2011 | The UK\'s Inflation Problem: Selling England by the P
An insightful perspective from HAndrew Sentance ( External Member of the Monetary Policy Committee) on the future trend of inflation in the United Kingdom. He suggest the inflation threat is higher than most people think.
External Influencing Factors & Foreign Currency Exchange Rates
There are strong forces at work on the global economic front. There is the upward revision of global growth as most countries recover from the remnant effects of the financial crisis.
UK's currency the Sterling Pound have also been experiencing a faster than normal depreciation from 2007 to 2009 which contributed to the higher than targeted inflation rate.
There have been some calls to strength the sterling pound to control the persistent rise of UK prices. However the exact implementation might be difficult if the UK budget deficit continues to be finance mainly through government borrowings. These conflicting requirements would need to resolve to UK inflation & economic woes.
Revealing Articles on the UK Budget Deficit
- Deficit, national debt and government borrowing - how has it changed since 1946? | News | guardian.c
This blog article has some revealing UK economic data dating back from the 1940s.
- UK\'s budget deficit \'set to top Greece\'s\' | This is Money
18 February 2011 - An alarming wakeup call for UK's financial ailments with the government having to borrow money in January for the first time ever.
- UK budget deficit balloons to record high - Telegraph
17th March 2011 - Britain's public borrowing unexpectedly hit record highs of 23.3 billion sterling pounds in November 2010 - Source from the Office for National Statistics (ONS.)