
Britain risks turning into a stagflation nation
Inflation figures out this morning make for grim reading: the headline rate didn’t budge, sticking at 8.7 per cent on the year in May. Far worse, core inflation (which excludes food and energy) rose once again, to 7.1 per cent on the year in May, up from 6.8 per cent in April. This latest update from the Office for National Statistics carries far more weight than your usual monthly report. With mortgage costs spiralling into a crisis, the Bank of England will have been looking for any excuse to stick to a dovish interest rate hike or to even hold rates, as the Federal Reserve did last week for the first time
