Dr Alf’s Two Cents: Consumer Price Inflation May 2013 – ONS

The Bank of England in Threadneedle Street, Lo...

The Bank of England in Threadneedle Street, London. Deutsch: Sitz der Bank von England in der Londoner Threadneedle Street. (Photo credit: Wikipedia)

Fiscal policy

Fiscal policy (Photo credit: Wikipedia)

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The latest ONS report on consumer price inflation in the UK is INTERESTING READING. Check it out!

via Consumer Price Inflation, May 2013.

The most significant comment for me was:

The largest upward contributions to the change in the rate came from transport (notably air transport and motor fuels) and clothing.

It will be interesting to see whether the latest announcement will have any impact on the two important levers of economic policy, namely fiscal policy and monetary policy. I suspect that there will be little change to both. UK Chancellor, George Osborne is still locked in to his austerity policy, so no change in fiscal policy. Meanwhile, it is probably too early to expect any change in direction from the new leadership at the Bank of England as far as monetary policy is concerned.

Regular readers of this blog will know that I agree with the IMF‘s view that austerity in the UK has been too severe and the economy should be carefully reflated. In particular, I endorse the IMF’s recommendation to increase public borrowing by £10 billion this year and invest it in top-class infrastructure projects.

Any thoughts?

 

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The G8 Obama and Syria: Why Putin Came Out on Top – The New Yorker

This is an excellent article from John Cassidy in the New Yorker. It’s a RECOMMENDED READ in my view.

The G8, Obama, and Syria: Why Putin Came Out on Top : The New Yorker.

Whilst I was not surprised at the G8 once again failing to live up to its hype, the conclusion is deeply worrying. UK G8 host David Cameron was certainly no match for the shrewd and decisive Vladimir Putin.

Any thoughts?

The New Yorker

The New Yorker (Photo credit: Wikipedia)

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