UK inflation runs rampant

UK inflation ballooned to 2.7% in November, from 2.4% the previous month.

The figures - reported by the ONS - show inflation at its highest rate for almost a decade.

The rise continues against a backdrop of repeated inflationary warnings through the year, coupled with an every weakening global economy.

The latest news increases speculation that the Bank of England will raise interest rates early in November 2007.

Overall, the news isn’t entirely surprising - we’re still coming down from a peak in oil prices that helped drive inflationary pressures.

However, even when warning signs became apparent over the previous 12 months, the Bank of England has been repeatedly slow to respond.

Instead it has been seen to opt for a “boom and bust” cycle to squeeze as much as it can from the UK economy, rather than apply a more sensible and balanced cap on growth.

This is especially in the case of property prices, which have been allowed to unecessarily spiral out of control.

While many warnings have been sounded over the past couple of years about a potential recession, it’s worth reminding ourselves that this still remains a very real possibility in the near future.