Oct. 22, 2008 -
PRLog -- London (Shakespeare Finance) : According to an interesting declaration made by the Office for National Statistics, Inflation for the month of September has hit the unbelievable mark of 5.2 percent. However, for the past few days things have been shaping very well and it is believed that the coming time will see a miraculous recovery from the severe impact left by the global meltdown crisis on the economy.
The Office for National Statistics cited the pressure exerted by the sudden blooming of utility bills for that extra hike of over half percent. Quite interestingly, this was exactly double then the rate set by the Central Bank which was 2 percent. However, incidentally, Bank of England has already accommodated for this leap after it reduced the rate of interest rate by half a percent, last week, to unclog the blocked arteries of economy, so that the smooth flow of liquidity could be ensured.
Overall, keeping the present situation in mind, if the experts are to believed, they say that the worst phase is over and after the divine intervention of government under the leadership of Gordon Brown, things are finally looking good. Jonathan Loynes, who works as a chief European economist with the Capital Economics, was quoted as saying, “ September's figure will be the peak in inflation and the key issue now is just how far it will drop back as the food and energy effects which have pushed it up so sharply finally fade or go into reverse.” He also added, saying, “ Needless to say, steep falls in inflation will help to restore households' spending power and allow the Monetary Policy Committee to cut interest rates very sharply. We continue to expect rates to drop to 2.5 percent or less.” Jonathan's statement has definitely sent positive signals for the economy. His statement also represents the positive frame of mind that is much-needed to instill a fresh lease of life into the paralysed economy of UK.
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