NationStates Jolt Archive


Inflation Rises to 2.08%

Azazia
14-12-2006, 20:51
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Philadelphia Inflation in the United Kingdom rose by half a percent to 2.08%, according to official data released this morning. At 2.08%, the rate of inflation remains below the official government target of 2.25%, but is now within range of the target and many analysts expect the news to influence the decision of the Commonwealth Bank to potentially raise interest rates next month.

Much of the increase is attributed to rising energy and fuel costs. Although down in recent months, the overall trend in energy and fuel costs points to positive growth in coming months and many economists expect that the Commonwealth Bank will be forced to raise interest rates to increase the cost of borrowing money and thus reduce consumer spending, reported last week as strong, to try and fight the inflation.

In reaction to the news, shadow chancellor Rodney Ingrahm criticised the Salisbury government for failing to address what he labeled “systemic problems” with the Oceanian economy, in particular a dependence on a carbon-driven economy. He pledged that if elected leader of the Conservative Party he would lead the party to “realising a new economic revolution.”

Chancellor Stephen McKay refuted Mr. Ingrahm’s claims, responding at a Treasury press conference that the Salisbury administration “consistently and frequently reevaluated economic indicators” and Mr. McKay continued to reaffirm that 2.08% is “well within the government’s target.” He added, however, that he would press the Commonwealth Bank to “redress the concerns of the Oceanian people.”