Bank of England gains footing thanks to inflation rate

“British inflation ticked down in August despite a rise in oil and fuel costs, providing the Bank of England with more leeway to inject additional cash into the fragile economy. The Office for National Statistics said on Tuesday that consumer price inflation slowed to 2.5 percent last month from 2.6 percent in July, in line with economists’ forecasts,” a Reuters article writes today. The article continues, “British government bond prices ticked up after the release. The central bank has been hoping that inflation will ease back towards its 2 percent target over the next few months, helping cash-strapped Britons and supporting consumption. ‘There is a little bit of relief for me around these numbers,’ said RBS economist Ross Walker, adding that he had expected greater upward price effects on recreational goods and hotels and restaurants from the London Olympics.” Read the full article here.

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