Inflation Expectations On the Rise in the United KingdomPosted: November 9, 2009
Inflation expectations are not only on the rise in the U.S., but also on the rise in the United Kingdom. The Financial Times reports in “Markets’ inflation readings edge upwards“:
In the UK, the difference between gilt yields and those on inflation-linked paper rose to 2.25 and 2.82 per cent respectively on five- and 10-year paper – the highest readings since immediately after the Lehman Brothers collapse.
Given that housing prices in London recently hit new all-time highs, we should not be surprised that more Brits are joining those of us on inflation watch on this side of the Atlantic…