January inflation rate a "blip" - King

[rebbonk]

Bank of England caught in inflation-recession squeeze
UK inflation is up but will soon be down. That is the line of Mervyn King.

The Bank of England's governor says the 3.5pc annual inflation rate in January is "temporary", despite a high 3.1pc core inflation rate, which excludes energy prices. King is probably right, but both inflation and deflation threaten the UK's recovery.

Inflation has been buoyed by the weak pound, higher oil prices and a rise in the VAT rate. House prices, the old bastion, are also up. As oil and VAT increases are absorbed, inflation should fall back in the next few months.

Story here http://www.telegraph.co.uk/finance/economics/interestrates/7254028/Bank-of-England-caught-in-inflation-recession-squeeze.html