Inflation
Breaking news today – inflation has dropped from 11+ % to 8.7%
My apologies if this is insulting your intelligence, but, two people on the radio said, something like – ‘that will help the cost of living’ – and seemed to think that prices would now start dropping.
Wrong, of course – it just means that prices will continue to rise, but not as fast as before.
I have been around long enough to remember when an inflation rate of 8.7% would have been seen as a disaster.
I remember a UK – “Black Monday’ in October 1987– when inflation shot up to 15+ %.for a short while and just under 11% for a longer time – linked to a global crash in share values on stock markets, – started by a similar crash in the USA.
The base interest rate in the UK was then raised to 4.25%. It is currently -4.5% – which is, at least, causing inflation to drop slowly.
Since 2022, the Bank of England’s target inflation rate has been 2% – which means that the Governor of the bank is having to write a letter to the Chancellor, every month – ‘explaining why they have missed the target – again – so that’s all under control then!
On a lighter note:
Inflation is actually going down –
and will continue to drop – irrespective of government or bank actions because of global movements – particularly a drop, in energy / oil and gas – wholesale prices – which will ‘filter through’ eventually!
So – always look on the bright side of life.