Printer Friendly

Inflation will drop - Mervyn.

FAMILIES facing the biggest squeeze on household incomes since the 1930s should expect some respite from high inflation next year, Bank of England governor Sir Mervyn King said last night.

Sir Mervyn said price pressures still remained "subdued" and weakening demand should see prices fall further, despite CPI inflation hitting a three-year high of 5.2% in September.

Spiralling energy tariffs and mobile phone bills were behind the higher inflation rate, which dwarfs average wage growth of 1.8% a year and comes as unemployment is at a 17-year high. The Office for National Statistics said gas and electricity jumped 13% and 7.5% respectively, food shot up 6.4%, communication costs, driven by mobile phone charges, increased 5.9% and transport prices gained 8.9% on a year ago.

Sir Mervyn defended the Monetary Policy Committee's decision to pump an extra pounds 75bn into its quantitative easing programme.
COPYRIGHT 2011 MGN Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Western Mail (Cardiff, Wales)
Date:Oct 19, 2011
Words:149
Previous Article:Boys killed by fire in den under the stairs.
Next Article:Police criticised over death.
Topics:

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |