UK inflation hits 3.5 percent in January

The UK economy just returned to growth in the fourth quarter but already, inflation is surging. From Reuters:

Inflation surged further above the Bank of England's target in January, forcing Bank of England Governor Mervyn King to write a public letter where he said inflation should still get back on track later this year.

Official data showed consumer price inflation rose to 3.5 percent in January from December's 2.9 percent -- in line with economists' expectations, after a rise in value-added tax on January 1, as well as falls in oil and food prices a year ago coming out of the annual comparison.

At least the recovery has not faltered, not in the US anyway. From Bloomberg:

Confidence among U.S. homebuilders rose in February to a three-month high, a sign that the housing market is stabilizing amid government support.

The National Association of Home Builders/Wells Fargo index of builder confidence increased to 17, higher than anticipated, from 15 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor...

The Federal Reserve Bank of New York’s general economic index rose to 24.9 this month from 15.9 in January. Readings above zero in the so-called Empire State Index signal growth in the area covering New York and parts of New Jersey and Connecticut.