Who would have thunk it? Inflation has again “surprised” on the upside – 3.4 per cent against a 2.0 percent target. Why so high? Even the return of 17.5 percent VAT does not justify this bounce. Might it have something to do with all those bank notes which were being printed by the Bank of England? Might interest rates be going up now to control this inflation – and, if so, what impact would this have on a UK economy which is already the most indebted of any major economy in history? The March figures show Britain has, by some margin, the highest inflation of any major European economy: it’s way higher than that of France (1.7 percent) Spain (1.5 percent) Italy (1.4 percent) or Germany (1.2 percent). And in America, 1.1 percent.
I’m sure that George Osborne will be jumping right on this data, pointing out that we have yet another manifestation of Gordon Brown’s economic incompetence.
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