Inflation: A warning light is flashing on the economy's dashboard

UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear. The rise, while below economists' expectations of a rise to 3%, continues a gradual creep higher in the inflation rate seen in recent months. Bullus said the rise is the "clearest sign yet" that years of loose monetary policy could finally be causing inflation to overheat. "While growth was negligible or in reverse, QE's inflationary pressure was kept in check. Now GDP is surging ahead, the side effects of all that money printing are becoming clear. "...