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The European Central Bank on Thursday dampened expectations that it was edging closer to its first interest rate increase since 2008, as Jean-Claude Trichet, the bank's president, said rising commodity prices had not yet led to lasting inflation.
The result is likely to be a modest recovery, led by exports, with a lasting inflation overshoot," he said.
Weak growth in wages and stable inflation expectations suggest few lasting inflation pressures, Bernanke said.
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In its last Inflation Report, the MPC presented a forecast whose central projection showed inflation rising to 2.5% by the start of 2003.
But while the Bank has only slightly pared back its growth forecasts since its last Inflation Report in August, the same can't be said of inflation.
Few care why consumer prices have slipped temporarily from the modest upward path the Bank foresaw in its last inflation forecast.
Nothing had really changed since the Bank's last inflation report in February, although the passage of time means that the economy has edged closer to the point at which rates will be lifted from the emergency level of 0.5%.
The Bank of England has been surprised by the strength of the economy since its last inflation report in August, and Threadneedle Street is in no hurry to bang up interest rates too quickly, for fear of choking off the recovery.
In his last inflation report as the Bank's governor, Sir Mervyn King said inflation should drop to its target of 2% within two years.
The total yield of an I Bond is made up of two components: a fixed or "real return" interest rate that remains the same for the life of the I Bond, and an inflation adjustment that's announced every six months The interest rate portion is currently 0.3%, and the last inflation adjustment was 3.06%.
But looking back to the last inflation-adjusted peak price in 1980, it's far from impossible that the gold price could soon go above $5,000 an ounce.
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