Inflation jumps much more than expected

[Reuters]

LONDON (Reuters) - Inflation shot up in July to more than twice the Bank of England's target as food prices rocketed, official data showed on Tuesday, dousing expectations of any near-term interest rate cuts.




More...

[Sweetpea]

LONDON (Reuters) - Inflation shot up in July to more than twice the Bank of England's target as food prices rocketed, official data showed on Tuesday, dousing expectations of any near-term interest rate cuts.

The Office for National Statistics said consumer prices were unchanged last month, which took the annual rate of inflation up 0.6 percentage points to 4.4 percent.

This was both the biggest jump and the highest rate since the data series began in 1997, and left inflation far above the Bank's 2.0 percent target.

Analysts had predicted a rise to 4.1 percent and interest rate futures fell on the report as dealers bet interest rate cuts to boost the slowing economy were unlikely soon.

Hmm, not good news by any means. Ooops, 'scuse pun.

[Churchill]

These figure don't even cover true inflation as the way it's calculated is artificial anway. The fact is things cost considerably more than they did 10 years ago, petrol is up by 35% in a decade.

[Haqa]

Whichever way up you hold it, inflation has doubled since christmas...

H.