Inflation wakes from sleep

Once again, nerves are being tested: this time on the inflation front. December’s UK consumer price inflation numbers (CPI) recorded a monthly jump of 1% to 2.9%. On the surface, there is no need to panic. These look mainly to be from the temporary impact of higher energy prices and the cut in VAT. Turning East, as higher inflation proved a headwind for policymakers in 2008, it took a bit of a backseat last year. However, research suggests, (excluding China and the deflationary impact of Japan from this equation), inflation actually stabilised across most of East Asia to about 4%. Win...