Tuesday, 16 February 2010

Inflation Gathering Pace: Was 2.9%, Now 3.5%

After a nice relaxing Valentine's weekend away with Mrs D, it seems the first bit of news to catch my refreshed eye is this report by the BBC.

I said well over a year ago we were headed for hyper-inflation. I may well be proved right. Like I said in my last post on the subject, the BAnk of England only have mechanisms to influence inflation, they can't act directly.

So, given the Bank of England will be writing a letter to the government explaining the failure to contain inflation to the 2% target, I wonder if it'll also contain dire arnings for future inflation trends and any advice on government action they may be necessary?

I'm sure now that VAT will go up to 20% in the next few months. Probably after the election as the established parties don't want a murderous electorate attacking them as they're canvassing for votes.

But there you go: more TAX, this time to curb spending and lower prices. Of course it won't be the governments fault for printing 200 billion phoney pounds, there'll be some other reason. I suspect even us, the public may be framed for the crime.

Anyone that lived through the seventies will already be having that sense of deja-vu, as well as planning their emigration to a warmer climate where heating doesn't matter. Those of us left to stick it out will be able to look forward to higher priced goods, more expensive food and prohibitively expensive fuel bills.

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