Economy heads for recovery mode
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The economy is moving out of recession and into a recovery phase, according to Andrew Sentance, a member of the Monetary Policy Committee.
In a speech at Royal Holloway, University of London, last week Sentance - an external member of the Bank of England’s MPC - said the latest figures on gross domestic product were at odds with other economic data.
Last month the Office for National Statistics published an initial estimate that the economy contracted by 0.4% in Q3 2009, defying expectations of a rise.
But Sentance says latest data from the Organisation for Econo-mic Cooperation and Development points to a resumption of growth since the first half of the year. He also says current signs of recovery are stronger than those seen after the recession of the early 1990s.
October saw a rise in the consu-mer prices index to 1.5%, up from 1.1% in September. CPI inflation has been dropping steadily since February when it was 3.2%.
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