Inflation expectations are not only on the rise in the U.S., but also on the rise in the United Kingdom. The Financial Times reports in “Markets’ inflation readings edge upwards“:
In the UK, the difference between gilt yields and those on inflation-linked paper rose to 2.25 and 2.82 per cent respectively on five- and 10-year paper – the highest readings since immediately after the Lehman Brothers collapse.
Given that housing prices in London recently hit new all-time highs, we should not be surprised that more Brits are joining those of us on inflation watch on this side of the Atlantic…