S**t my economist says #7

A temple which desperately needs ridding of its money lenders

Last week came the news that inflation, at 4.5%, was outside of the mandated target range for the 17th month in a row and, as Michael Saunders of Citi warned, 80% of the items measured in the CPI are rising by more than 2% year on year reflecting a broadening of inflation.

Despite all this we hear today from Paul Fisher of the Bank of England that apparently it is not rising prices and inflation which are the danger, but falling prices and deflation.

Think about what direction the prices of the fuel and groceries you buy have been moving recently and see if you share Mr Fisher’s concern that their prices might fall.

The Monetary Policy Committee of the Bank of England has been a total failure. It’s members, their pensions indexed for inflation, don’t even live in the real world.

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