Surprising rise given the strength of the dollar. Over here we have a collapse in the value of sterling, 30% down, so I can't see how we can fail to have a pick up in inflation this year as we import almost everything we consume...

The UK CPI remains at 3%, above the 2% target, yet the talk is all of deflation, by which they mean falling prices. I can only see CPI going up because of higher import prices and as energy prices firm up. Even when there is no demand firms don't stay in business long selling stuff at a loss. How can stores keep discounting when their import costs are going up and they're not even making a profit?

Money supply growth here is in the mid teens and the BofE has asked permission from the chancellor to start monetising government and commercial paper. Budget deficit looks like way, way overshooting already eye watering projections (>10% GDP). No one is going to buy all that debt except the BofE, either directly, or through the nationalised banking system. Still talk of Lloyds Banking Group having to be nationalised which usually means it will eventually happen...