Inflation 'has little to do with QE'

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Inflation 'has little to do with QE'

Fri 14th Oct 2011

Levels of inflation that are being seen in the UK at present have little to do with quantitative easing (QE) measures that have been brought in by the Bank of England (BOE).

Dave Penny, independent financial advisor and managing director at Invest Southwest, said external factors beyond the control of the government and the BoE are having the greatest bearing on inflationary pressures in the UK at present.

"We are suffering because of the weak pound and the exorbitant cost of food and commodities - oil and gas in particular," he commented.

Mr Penny added that the poor exchange rate is currently making imported goods more expensive and this is having a significant impact on the pockets of consumers across the country.

According to Ben Wilkie, editor at What Mortgage, interest rates in the UK are set to remain at historic low levels for some time, with any rise unlikely to take place until at least 2013.

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