There were no doubt some serious sighs of relief at the Bank of England yesterday. Finally, some good news on the inflation front – UK producer prices dropped by the most in at least 22 years in August. That’s bound to encourage hopes of interest cuts more quickly than expected.
Inflation’s soaring, the pound’s collapsing, and the Bank of England reckons we could be heading for recession. But one man still has a smile on his face.
Interest rates are set to rise next month!
The news on the UK economy just keeps getting worse. Last week’s news was unremittingly glum - from falling house prices to income squeezes, most of us are quite a bit worse off than we were a year ago.
I really wouldn’t like to be the man in charge of sorting out the UK economy today. Almost every piece of economic data so far this week has been as bad as it could be.