Inflation accelerates in UK and France

Despite the slowing global economy, there are still signs of inflation.

In the UK, the Office for National Statistics reported on Tuesday that consumer prices rose 0.6 percent in August, taking the annual inflation rate up to 4.5 percent from 4.4 percent in July.

In France, national statistics office Insee reported that the inflation rate accelerated to 2.4 percent in August, the highest since October 2008, from 2.1 percent in July.

Not all economies are reporting accelerating inflation though.

Elsewhere in Europe last week, Germany reported that its inflation rate fell to 2.5 percent in August from 2.6 percent in July.

And in the US, a Labor Department report on Tuesday showed that import prices fell 0.4 percent in August, reversing the 0.3 percent increase in July. However, that still left import prices 13.0 percent higher than a year ago.

Ironically, Tuesday saw a call for further monetary stimulus from a central banker in what appears to be the country with the biggest inflation problem. From Reuters:

The Bank of England must take urgent steps to stimulate the sluggish economy and should work with the government to set up a new bank to boost lending to smaller companies, Bank policymaker Adam Posen said on Tuesday.