This means that the UK real household

  • Many British people can feel what the mall in recent months, especially food, clothing rose sharply. For example, price stability over the years has been 1.5 kg during the first half a pack of plain flour, or 42 pence, has now risen to nearly 52 pence. One kilogram of a Plastic Snap Cap Pill Bottles packet of oatmeal before you can often buy more than 50 pence, the price is now close to 1 pound, up nearly doubled. While clothing and footwear prices also rose. Prices are rising fast on the economy cast a shadow over prospects for recovery, the Bank of England also made some difficult.Rapid rise in UK prices in the Government's inflation must also reflected in the report. 14 days, according to the latest Consumer Price Index published reports, in November the United Kingdom Consumer Price Index 3.3% annual rate, compared with October and rose 0.1 percent to the highest point since May of this year.

    At this point, the first 11 months of this year, the British consumer price index has been above 3% per annum higher bit wandering.In particular, the many people worry that the UK's most immediate needs of daily life in the commodity price rises quickly. November compared with October, food and beverage prices rose 1.6%, a record increase over the same period. And the price of clothing and footwear rose by 2% more, to create the highest increase recorded over the same period of history, particularly in apparel prices rose faster for the most.UK inflation the most important and most direct reason is the recent global prices of commodities and raw materials increased significantly.

    According to the statistics show that since June of this year, the international market, cotton prices have risen more than 60%, the highest level. As another example, the past year, international wheat prices also rose by 65%, as rising food prices push one of the major. Of course, as the world economy, including Britain's own economic recovery, demand began to rise is one of the factors promoting inflation.Moreover, the inflation outlook for next year, the UK is more problematic. Another half a month, Britain's consumption tax increase from the current 17.5% to 20% of the UK the second time in 12 months raised the consumption tax, the year's gains of 5 percentage points. Many analysts predict that the consumption tax increase, coupled with the current price increases are expected next year, Britain's consumer price index will rise to 4% or more than 4% over the Bank of England Bank of England --- the 2% inflation control target twice.

    British inflation rate rose so quickly, much is expected out of the original Bank of England, but also it's "prestige" by the damage. Many people still remember, at the end of last year, when the Bank of England has predicted that UK inflation will gradually decline this year, in the end of the year may fall below 2% of the control objectives. With time, the momentum does not continue to see the Bank of England "changed to" first say that this year will exceed 2%, and next year may be controlled to within target. The latest report released in November of words is more "flexibility": This year will go more than 2% of the control objectives for next year's inflation will remain above 2% in 2013 may be below 2%, but still a high degree of uncertainty. Put it bluntly, this is equal to the forecast did not say, there is no practical significance.The economic recovery is still in "primary" stage and faces many uncertainties, the United Kingdom is currently the slow growth of family income. The data show that family income to the UK this year, an increase of only half of the inflation rise.

    This means that the UK real household income declined. This will allow British families of the "financial expenses" stretched, thus causing significant economic recovery, the adverse effects.People for the Bank of England inflation on the economy and ability to judge the trend of some doubt, so that the central bank's "reputation" damaged, leading some people to their lack of confidence. This also brings to the Bank of England two aspects: on the one hand, slow and sluggish economic recovery stimulus needed to loose monetary policy in order to promote faster economic recovery; the other hand, inflationary pressures at a faster rate of increase large and need to consider tightening monetary policy to prevent inflation out of control. Faced with such a dilemma, a dilemma was really a bit so that the Bank of England.