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- Title
Why is inflation so low?
- Abstract
The article reports on the reason for low inflation rate In the Great Britain. In the twelve months to September, the sterling price of Brent crude oil jumped by 43 percent. Steel prices were up by 34 percent, and the price of houses rose 19 percent. Retail gas and electricity prices climbed by around 6 percent and Council Taxes were up by an average 6 percent. All that sounds like an explosive mixture for the Bank of England, which through its management of monetary policy is responsible for maintaining a low and stable rate of inflation in the United Kingdom. And the inflationary risks might seem even greater if one allows for the fact that, although nominal interest rates have been rising over the past year, they are still well below levels seen at this stage of the business cycle at any time in recent decades.
- Subjects
UNITED Kingdom; FISCAL policy; STEEL industry; EFFECT of inflation on the banking industry; MONETARY policy; CURRENCY boards; MONETARY theory
- Publication
Bank of England Quarterly Bulletin, 2004, Vol 44, Issue 4, p502
- ISSN
0005-5166
- Publication type
Article