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.


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


Woody Finch said...

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

Alice Cook said...


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