Mr Carney has been forced to blow the dust off his quill pen as Inflation rose to 3.1% this morning, the highest in almost 6-years. The mere fact Governor Carney now must officially write to the Chancellor portrays the importance of this print specifically, recording levels we haven’t seen since April 2012. It seems the UK has taken one step forward in Brexit negotiations last week, then two back with Inflation rising and pessimists rightly pointing out that stage one of negotiations being complete pales in significance to the bumpy road ahead, as Trade deals are not on the agenda. As the UK still struggles to come to terms with Brexit, the US is set to raise rates again tomorrow exemplifying the gulf in economic progress between the two allies.
Alex Lydall quoted in Reuters
A sigh of relief this morning for the Bank of England and its policymakers as UK Inflation missed its 3.1% forecast and remained unchanged at 3.0%. Governor Carney dodged his ink pen for yet another month, avoiding the need to explain to the Chancellor of the Exchequer when inflation surpasses the 3.0% mark.