I need to find another word to describe inflation. I've been using "surge" a little too often. However, that is exactly what the CPI rate did in June. It jumped from 3.3 percent in May to 3.8 percent in June.
Going forward, a 4 percent rate by the end of the summer is a certainty. How about 5 percent by Christmas?
As for the 2 percent inflation target, that looks like a total joke. With the exception of two short periods, the Bank of England failed to meet it since the middle of 2005.
Any chance of a sensible rate hike from the MPC? Thought not.
International Herald Tribune