The NYT Fails to Tell Readers About UK Inflation

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Saturday, 17 September 2011 22:30

The NYT has an interesting piece discussing Adam Posen, a U.S. citizen who sits on the Bank of England's monetary policy committee. It reports Posen's view that the Bank of England and other central banks should take aggressive actions to boost the money supply in order to support growth. It contrasts this view with the concerns of inflation raised by others, noting that inflation in the U.K. has been 4.5 percent over the last 12 months.

The piece then presents Posen's assertion that inflation will come down, which is met by the skepticism of his critics. It would been helpful to tell readers that inflation already has come down. It was 0.0 percent in July, -0.1 percent in June, and 0.2 percent in May. This means that over the last three months inflation has been increasing at just a 1.0 percent annual rate. This piece of information would have been helpful to readers.