UK Inflation Falls To 3 Percent
UK annual inflation fell to 3 percent in February, from 3.5 percent in January, and slightly lower than the 3.1 percent the market had been expecting.
The Bank of England said last month that “inflation is likely to remain significantly above the 2% target in the near term, reflecting the continuing impact of sterling’s depreciation and the restoration of the VAT rate to 17.5%."
"These factors should have only a temporary effect on inflation," they added, talking their own book.
The currency markets were relatively unmoved by this slightly better result, following last week's warnings of a double dip risk from MPC member Andrew Sentence, with the pound holding a little above USD1.50 for now.
Step into the limelight Alistair Darling. Our half albino, half caterpillar Chancellor will open up his magic handbag of tricks tomorrow. The pound could be in for a volatile day.
Who's putting their money with me on ruthless pre-election inaction? Doing not a lot really might put the pound back under a bit of pressure.
The Bank of England said last month that “inflation is likely to remain significantly above the 2% target in the near term, reflecting the continuing impact of sterling’s depreciation and the restoration of the VAT rate to 17.5%."
"These factors should have only a temporary effect on inflation," they added, talking their own book.
The currency markets were relatively unmoved by this slightly better result, following last week's warnings of a double dip risk from MPC member Andrew Sentence, with the pound holding a little above USD1.50 for now.
Step into the limelight Alistair Darling. Our half albino, half caterpillar Chancellor will open up his magic handbag of tricks tomorrow. The pound could be in for a volatile day.
Who's putting their money with me on ruthless pre-election inaction? Doing not a lot really might put the pound back under a bit of pressure.