FTAdviser/David Thorpe/6-24-2022
“The very high UK inflation rate is now “embedded and persistent” in the domestic economy, according to Catherine Mann, a member of the Bank of England’s Monetary Policy Committee.”
USAGOLD note: The progression goes something like this – nonexistent to transitory, transitory to persistent, persistent to embedded – and it can happen quickly, as shown in the chart below. Now, Mann tells us, inflation is “embedded and persistent” in the British economy. A good many economists would say the same about the United States. Once the inflation message sinks in with investors, inflation could have an even more substantial effect in financial markets than it already has. We will add it is running very near double-digit levels in the UK.
United Kingdom Inflation Rate
Chart courtesy of TradingEconomics.com
