The Consumer Price Index rose from 2.2 percent in September to 2.7 percent in October. Another one of those one-off blips, we will no doubt be told.
The trouble is that we seem to get an awful lot of these one-off inflationary blips. They happen so consistently, you need to go back years for a time when the Bank of England managed to achieve its 2 percent inflation target.
Instead of sagely informing us that this latest inflation increase is "above expectations", isn't it about time that the churnalists started to ask "whose expectations?" Or challenging the folk doing all that misplaced expecting?
"But" I hear you think. "this increase in inflation is due to food price rises. You can hardly blame the Bank of England for that, can you?"
But why on earth do you think food prices in UK shops have risen? Might it perhaps have something to do with the fact that the Pound Sterling has lost value such that you now need more of them to buy stuff from overseas?
Five years ago, £1 would have got you almost Aussie $ 2.2. Today? Aussie $ 1.52. Back when print-money-and-pray economics began, £1 could be exchanged for more than US$ 2. This morning? US$ 1.59.
Ever since the Bank of England started conjuring QE money out of nothing, our currency has been falling in value against everything from the Euro and the Yen to the Bulgarian Lev and the Latvian Lat.
The Pound Sterling has fallen in value over the past five years against almost every other currency on the planet, with a handful of exceptions.
If you persist with print-and-pray economics, perhaps you should expect both internal and external devaluation?blog comments powered by Disqus
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