Inflation rises, but we should still fear deflation

The annual inflation rate was always likely to rise in early 2016 - the surprise is that it has not risen by more

The level of inflation poses a risk to the UK economy, but not in the way that you might think. Inflation is worryingly low, rather than worryingly high.

That may seem a perverse idea at a time when the cost of living as measured by the consumer prices index has risen to its highest level in a year. But consider the following.

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