I wish someone could tell me when this deflationary cycle is going to arrive. UK prices are taking off like a rocket.
In June, producer prices were 10 percent higher compared to the same month in 2007. The chart tells its own story. Prices are running out of control.
The choices for the MPC are getting starker. Inflation is not subsiding, the policy of waiting and hoping is an abject failure. Sooner of later, rates will have to rise.