Even the estimable Guido Fawkes has joined The View from Cullingworth in predicting higher inflation:
+ + + CPI 4% Inflation – Double Bank of England Target + + +
+ + + RPI 5.1% Shoppers Feel the Squeeze + + +
And remember...you read it here first:
What Gordon would really like is to get his hands on our savings. On the billions we have squirreled away for our retirement, to pay for long-term care, to provide for our kids education, to do any number of little things we thought were important. But nothing is more important than Gordon pretending he doesn’t have to cut public spending. Nothing. Not your retirement pension, not the lump sum to pay off your mortgage, not the cash sums you’d like to give to your grandchildren. Nope. Gordon needs that money.
And he’s going to get it. Not by confiscation – that wouldn’t be popular. He can’t introduce a stinging wealth tax without plumbing new depths of unpopularity. But he’s going to get it…
…he’s going to use inflation to make your meagre savings get him out of the mess. Let it rip…last month +1% - the most rapid increase on record. This month +0.6% - the second biggest monthly increase. And next month? Expect similar.
That was February last year - sadly, with a new government, little has changed. Our masters want a little inflation:
“I don’t want to see the Bank of England put up interest rates,” says Sir Martin. “What happened in the fourth quarter shows the perilous nature of making forecasts. But I can’t see the Bank raising rates with growth having slowed. I get the sneak feeling that the West wants a bit of inflation.”
Don't say you weren't warned!