Monday, 18 August 2008

Inflation feeds on sterling weakness

The poor old pound. The national currency has taken a pounding since the credit crunch. The exchange rate index (ERI), a measure of sterling's strength against all major currencies, is down over 11 percent since last August.

That adds up to higher import prices and a huge boost for inflation.

5 comments:

VADO said...

This chart says inflation.

Woody Finch said...

Well it says that the value of the pound has stabilised. Nothing to see here?

Anonymous said...

sterling weakness = inflation

Nick

Woody Finch said...

yes i know, but it's not getting any weaker apparently

Alice Cook said...

Woody,

The data ends about a month ago. Sterling is again on the slide.

Alice