We begin with the UK where the latest inflation report was significantly stronger than expected.
The Guardian: - The Office for National Statistics (ONS) said clothing prices were the main factor behind July’s rise, as shops offered fewer bargains in their summer sales. There was also some upward effect from airfares, which picked up more than last summer despite sharply lower oil prices.
Is this a fluke or are we looking at some easing of disinflationary pressures in the UK? The report immediately restarted the debate about the Bank of England being "behind the curve". This indicator will be watched closely for signs of strengthening prices in the UK and elsewhere in Europe.
