First, the Office for National Statistics announced that inflation, as measured by the Consumer Price Index, rose from 3pc to 3.2pc last month rather than falling as all economists expected……..A further surprise was that Retail Price Index inflation – the broader measure which includes the effect of mortgage rate cuts – did not fall into negative territory, instead dropping from 0.1pc to zero.
So, err (and remember that I not only don´t think much of macro economics I don´t get much of it either. Perhaps those two things might be related….) have we already done all the stimulating that we need to do then?
We don´t need to throw more money down the well to stop deflation?