06-06-2008

Economic organisation issues inflation warning

News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.

The Organisation for Economic Co-operation and Development (OECD) has issued a warning on the persistent danger of inflation.

According to the organisation, inflation remains a concern, given the recent increases in the cost of oil, reports the BBC.

In the UK, inflation is currently at a rate of three per cent, although this may change when the Bank of England releases further information on June 17th.

"Ministers were concerned about inflationary pressures and indications inflationary expectations may be drifting upwards," said the OECD, an organisation established in 1961 and headquartered in France.

In the BBC's report it was noted that the price of oil yesterday increased to more than $128 (£65.48) per barrel.

In related news, the OECD has called upon Canada to implement further interest rate cuts as a way to avoid recession, according to a report by the Financial Post.

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