While most of the developed world frets about deflation, in Britain, inflation just won’t quit.
The Bank of England has been forecasting a sharp fall in consumer price inflation for about as long as Britons have hoped for a summer of uninterrupted sunshine. But at least Britons are still betting on a fair amount of rain.
UK inflation was 3.2 percent in June, a slight fall from the month before, but still 1.2 percentage points above the central bank’s target rate.
“Another big shocker,” said one economist. “Yet another depressing month,” said another.
No wonder Londoners roll their eyes when on the one hand policymakers say inflation’s set to fall and on the other, they’re told that tube, bus and transport fares are set to rise sharply again next year – as they do every year.