Tagged: inflation

This is really quite a depressing situation, isn’t it? The Virus Taliban has taken control of our lives…yet somehow I remain cheerful. I remember reading a story about this Coronavirus just after New Year – going back to work and people talking about the new year and how good it was going to be, but I jokingly mentioned this virus might wipe us all out. I wasn’t taking the threat too seriously, but I did have in the back of my mind all the warnings I had read in publications like The Economist for the last 15 years that one …

So inflation has reduced again, now to 1.9%. Taken as good news – prices are therefore rising at a slightly lower rate than a month ago.  They may even soon be rising at less than wages are. But at what point does a reduction in inflation become bad news? Deflation has to be something for the Bank of England to cautiously watch for.  You may think deflation – falling prices – is a good thing. However, if prices are falling, consumers and firms put off purchases in the expectations that prices will fall further, and firms will then have to …

Dear fabric I note your £4 increase in door prices for members. £14 entry rather than the normal person entry of £19 is nice, but £10 entry made me feel special. I now no longer feel special. Time to spread my clubbing wings for a little while. But don’t worry, I will be back before long – just maybe not every month this year. Have fun without me. *** Previous post

You may have seen that inflation has jumped to 4.5% in April. Yet, the Bank of England, who are in charge of trying to ensure that inflation sticks to a target rate of 2%, are not doing anything to control inflation, through increasing interest rates. Is this acceptable? This article argues that savers now need a rate of 7.5% to earn a real rate of interest – as inflation is depreciating their savings. As far as I see it at the moment, those who got us into this financial mess, through reckless borrowing, and reckless lending, are being let off the …