As I have said repeatedly, the option of taking no action on inflation is always possible. Inflation does not, contrary to claims made, usually become embedded in an economy unless other circumstances exist.
Sigh.
The core CPIH annual inflation rate was 6.5% in May 2023, up from 6.2% in April, and the highest rate since November 1991 when it was also 6.5%.
That’s core inflation. Inflation without food and fuel. Core inflation, the thing people actually worry about as it’s the measure of the inflation embedded in the economy……
It was not hard to predict as a result that the inflation index should have fallen heavily this year. I did. So did the Bank of England. Rishi Sunak gambled heavily on it, promising it would happen. And right now it is not clear that it is. Inflation is much stickier than it should be. Something has going wrong in that case.
The question to ask then is whether inflation is …..
becoming embedded??.
Goess what question Spud doesn’t ask?
How much more money are we printing??
Inflation not embedded? Is this man a complete idiot? Well yes he is, of course.