How long before the jobs market pulls the inflation trigger?

Article Abstract:

Serious labour shortages are emerging in some areas of the UK economy and in some parts of the country. This is forcing some employers to offer higher wages in order to attract staff. This could in turn prompt inflation, making it necessary for the Bank of England to keep the economy in check by raising interest rates. The key economic policy challenge will be to bring economic growth when those who are without work cannot undertake the work available, either because they do not have the necessary skills or because they live in the wrong part of the country.

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The evidence of a slowdown is thin: interest rates need to rise

Article Abstract:

The UK economy is stronger than it has been for many years. The employment market is expanding rapidly, and skills shortages are now emerging in some sectors. Manufacturing industry is still facing difficulties, but exports are rising and GDP has grown every quarter since mid-1992. However, there is still the danger of rising inflation, especially if the Bank of England's Monetary Policy Committee does not raise interest rates sufficiently to keep inflation under control.

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The UK's economic stability is more than a flash in the pan

Article Abstract:

The prospects for economic growth in the UK are discussed, with the UK economy being compared with that of the US. It seems likely that the UK will see steady growth.

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