The official measure of inflation [in the UK] showed that prices rose 3.7pc in the year to December, up from the previous month's 3.3pc rate as the soaring cost of oil drove the biggest monthly increase on record.
The figures from the Office for National Statistics mean that inflation, as tracked on the consumer price index (CPI), stayed at least one percentage point away from the Bank’s 2pc target for the whole of last year.
This all is happening even as housing prices in the UK are slumping—December house prices in the United Kingdom fell 1.3% over the previous December.
Meanwhile, in the U.S., the ridiculously named “core inflation rate”—that is, inflation without food or energy prices—was all of 0.8% in 2010, while the CPI (Consumer Price Index) rose 1.5% in 2010, down from 2.7% in 2009.
Is the UK an aberration? Or a sign of things to come in the U.S.?
You decide! (We here at The Hourly G Command Central already know . . . and are planning accordingly.)