BOE's Dhingra: UK wages are responding to inflation with a lag

<ul><li>Sharp drop in PPI is promising</li><li>There is a lag between fall in PPI and CPI around one or two quarters</li><li>Food prices is where inflation remains most stubborn</li><li>Not very convincing to argue that UK grocery inflation is driven by "greedflation"</li></ul><p>Well, for their sake, that lagged effect better kick in soon. Otherwise, stagflation risks are mounting and they will have to risk a hard landing on the economy just to bring inflation back down.</p>

This article was written by Justin Low at www.forexlive.com.