inflation

Wednesday, January 23, 2008

Money causes inflation

It is not hard to understand really: too much money chasing too few goods.

M4 money supply has increased 12.3% in the United Kingdom in December from the same month last year, seasonally adjusted, M4 increased 25.0 billion pound from November, 1.5%, according to figures by the Bank of England.

December's 25.0 billion increase surpasses the average flow for the previous six months, at 12.8 billion pound according the Bank.

M4 lending increased by 17.3 billion, or 0.8% seasonally adjusted in December, while the 12 months average increased by 13.0% from 12.7% in November. Excluding the effects of securitisations, M4 lending rose by 24.6 billion pound, 1.0%seasonally adjusted. On the year, M4 lending rose 14.9%, from 14.3% in November.