Precious Metals Surge Immediately On Higher Than Expected UK Inflation
by Tyler Durden
Silver and particularly gold rose sharply on the release of the higher than expected UK inflation data. It showed that UK inflation quickened to 26 month highs at 4.0%. Currency debasement and higher food and energy prices are leading to an inflation surge in both developed and emerging markets.
The extent of the surge is being masked as the figures in the UK and internationally underestimate real inflation. Increasingly many economists are concerned that official statistics are misleading and hide the true increase in the cost of living (see ‘Official statistics hide true increase in cost of living’ in News today). A double-digit jump in food prices pushed China’s inflation higher in January – seeing consumer prices rise 4.9 percent, driven by the 10.3 percent jump in food costs.
The Chinese inflation data appears to be even more misleading and manipulated than that in western economies. Many governments are attempting to manage consumers perceptions regarding the significant increase in the cost of living as fiat currencies are debased.