5 Fresh Links: Focus on Inflation

There has been much coverage of the rise in UK consumer price inflation to 3.7% in December 2010 and another rise will happen when the January 2011 data is published because of the spike in VAT to 20%. Here are five links to comment pieces on the inflation issue:

1/ Interest rate alarmists should learn from history (William Keegan, Observer) - who argues that the 3.7% inflation rate must be seen in a historical perspective.

2/ Britain in battle over stagflation (The Telegraph) - are there any realistic parallels with the high inflation and slow growth of the 1970s?

3/ Many countries face catastrophe as inflation creeps up the food chain (Hamish McRae, Independent) - particular focus here on the global inflationary effects of rising food prices

4/ The British worker is suffering the pain of inflation – but in Ireland it’s worse (Stephen King, Independent)

5/ UK CPI inflation rate rises to 3.7% in December (Hugh Pym’s BBC news video report on the latest inflation data and the impact on different households)