Apparently you can’t have inflation without full employment

The UK faces its highest inflation for a decade as the end of furlough threatens to put another 150,000 people out of work, a leading think tank has warned.

The latest forecasts from the National Institute of Economic and Social Research (NIESR) predicted the Consumer Prices Index could hit 3.9pc early next year – the highest since November 2011 and almost double the Bank of England’s 2pc target.

How strange that the P³’s insistence is disproven so soon.

5 thoughts on “Apparently you can’t have inflation without full employment”

  1. Bloke in North Dorset

    Is he advocating putting up taxes now so we don’t get inflation or waiting to see and then put up taxes? Given the expectation of inflation can be just as bad as inflation shouldn’t he be advocating putting up taxes now?

  2. @ Ottokring

    +1

    When we have 20%+ inflation and people are having (as I did for my first) 11.95% interest rate mortgages, then we can worry.

  3. @ Andrew C
    So you were being massively subsidised by your mortgagee.
    When I had a mortgage in the 80s/90s I paid a positive real rate of interest.
    Actually we can worry about persistent inflation at any level as it gradually destroys the value of money as a store of value and the emptor’s ability to estimate value for money for infrequent purchases.

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