LONDON—U.K. annual consumer-price inflation rose sharply in January, prompting Bank of England head Mervyn King to write a letter to Chancellor of the Exchequer Alistair Darling explaining why it is now more than one full percentage point above the 2% target rate, data showed Tuesday.
The Office for National Statistics said consumer price inflation rose 3.5% in January. That was the highest rate since November 2008, while the increase from December of 0.6 percentage points was the second-largest month-to-month annual inflation increase since records began in 1996.
The data came as a surprise. Economists surveyed by Dow Jones Newswires last week had forecast the CPI would rise 0.2% from December and by 3.7% in annual terms.
What’s up now Keynesians?
I thought this wasn’t supposed to happen?
In other news:
European leaders closed ranks to defend Greece from the punishment of investors in a pledge of support that may soon be tested.
German Chancellor Angela Merkel and her counterparts yesterday pledged “determined and coordinated action” to support Greece’s efforts to regain control of its finances. They stopped short of providing taxpayers’ money or diluting their own demands for the country to cut the European Union’s biggest budget deficit.
Their whole treasonous pile of crap ponzi system is imploding.
Unfortunately, the Greeks have been trained into submission and now vast swaths of the Greek electorate are wholly dependent upon government for their subsistence. Thus the people of Greece are refusing all spending cuts and tax hikes, a surefire plan for total hyper-inflation and economic stagnation.
Greece is going down, just like the UK, the US, and the rest of the Eurozone.