The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Wednesday, May 18, 2011

UK core inflation spikes to 3.7% (vs. BoE target = 2%)

The market expected April core inflation in the UK to rise to 3.2% year-on-year. Instead, it came it at an incredible 3.7%. Yes, that's core inflation. Headline inflation is running at 4.5%. Have a read of the Bank of England Governor's apology to the Chancellor. God help us if the RBA ever lets itself get into this position. In effect, the UK no longer have an inflation target, which is one reason why it is spiralling out of control. The BoE blame a lot of this on their depreciating currency. But that is just an artefact of excessively low rates.