The UK inflation genie is out of the bottle
As 2010 draws to a close, it’s becoming ever clearer that the UK’s economic prognosis is not good.
By Liam Halligan
26 Dec 2010
I’m a natural optimist and don’t wish to upset anyone’s Boxing Day celebrations. Any commentator worth their salt, though, at times like this, should ignore such sensitivities. It would be wrong – reckless, in fact, given the slew of recent bad data – to fail to point to the worrying mix of economic issues the UK now faces.
During 2011, the British economy will suffer from rising inflation and sluggish (in some quarters, possibly negative) growth. This grim combination will be set against a budgetary situation that can only be described as ghastly.