Tuesday, April 17, 2012

inflation in Britain increased again in March

After falling for several months, the yearly consumer price inflation in Britain rate increased again in March , from 3.4% to 3.5%.

Bank of England Governor Mervyn King said in February last year after several years of inflation at 3% or more similarly that the high inflation then was just "temporary", and in February 2010 he similarly assured us that high inflation then just reflected "short-run factors".

The failure of British inflation to fall despite the fact that growth is stagnant or slightly negative is of course something that contradicts the Keynesian dogma that a weak economy must mean that inflation will be low

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