Tuesday, January 18, 2011

Inflation

The Office for National Statistics (ONS) reports that the annual rate of CPI (inflation) has risen from 3.3% in November to 3.7% in December.

These figures will be used by some to push the MPC into raising interest rates.

However, given the shaky state of the economy, any rise in rates should not take place until a commitment from banks and lending institutions (who already charge significant rates on loans/debts) that they will not use a rise in rates to extort further money from people already heavily in debt.

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