Money Distilled

Don’t Bet on British Inflation Woes Fading Soon

Hitting 5% on the UK gilt yield is not a crisis - it’s down to Britain’s chronic inflation problem.
The UK: Land of the Rising Sums.Photographer: Jason Alden/Bloomberg
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Welcome to the award-winning Money Distilled newsletter. I’m John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money.

A key cost of borrowing for the UK government, as measured by the 10-year gilt yield, hit the eye-catching figure of 5% yesterday. It’s now at its highest level since summer 2008.