Economic 'pain' set to continue - King

BoE governor Mervin King, speaking at the Inflation Report press conference, says the UK economy is going through a “difficult and painful adjustment” which “cannot be avoided”. However, King says he is confident the economy will “come through” the adjustment and return to a decade which will be considered “not so bad”. He says rising food and energy prices have pushed up CPI inflation to 4.4% in July and predicts recent announcements of rises in retail gas and electricity prices will see inflation “peak at around 5% in the coming months”. He says the continued adjustment of banks’ balan...