Inflation: is the problem getting bigger?
Professor James Woudhuysen will introduce a discussion on inflation, commodity price ups and downs, and what may lie ahead.
Questions to consider:
How important is inflation in general and right now, in the UK and internationally?
If not on a 1970s scale, is Britain entering several or more years of ‘stagflation’?
Of the current reputed sources of inflation, how much influence would we ascribe to (A) Chinese/Asian demand for commodities (oil, food, etc) fuelled by continuing urbanisation (B) Quantitative easing and general state indebtedness/largesse [China included] (C) The falling rate of profit, which causes employers to raise prices so as to buoy up margins (D) in the case of the UK, Sterling devaluation?
Why has the US been relatively immune to inflation until recently?
Daniel Pimlott, Travel costs push UK inflation to 4.5%, Financial Times, 17 May 2011
ONS, Inflation Statistics, 17 May 2011
OECD, Consumer prices and underlying data
Roger Bootle, Why we should hope for a large fall in commodity prices, Telegraph, 8 May 2011
Daniel Ben-Ami, Belated look at falling incomes, 20 March 2011
Monetary Policy Committee Remit, Gordon to Eddie, 2003