Wednesday, 11 August 2010 00:00
Britain is a facing a "choppy" economic recovery which will take longer than previously anticipated.
A number of indicators out today demonstrate the bleak situation Britain faces itself in, triggering concern about the coalition government's policies announced in the emergency Budget.
The 20% rise in VAT has been blamed for inflation remaining higher than the Bank of England's two per cent target for longer than expected.
And the Bank's estimate of GDP growth in 2011, in its August inflation report published today, is significantly downgraded from around 3.4% to around 2.5%.
Meanwhile employment figures fell by 0.2% in the three months to June 2010 to 7.8%. But the good news from the jobs market is not expected to last.