Inflation, is an economic concept. The effect of inflation is the prices of everything going up over the years. The effect of inflation is neutral on every economy. The impact is no loss no profit situation causing to Break Even Point. When the economy reaches saturation point, it ceases from side effects. And now Britain is under inflation status. Britain's inflation rate jumped over and above the Bank of England's 2 percent target to a sign higher interest rates have yet to wring price pressures out of the economy.
Consumer prices climbed an annual 2.1 percent making an increase of 0.5 percent on the prices in this month. There is fear that the British economy may face greater riks from gains in consumer prices or the little damage to their economy due to U.S subprime mortgage slump.
Whatever it is, but one thing is for sure, that the oil and food prices are under inflation magic and dealing with OIL in britain may be a little serious issue.
Oil climbed above $98 per barrel and food costs in British stores increased the most in almost two years.
I think spending on OIL and food are unavoidable and cant sit back without buying, but the purchase should be little sensible and reasonable. And when it comes to trading, beware is the best word to use.
