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Inflation


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What *is* inflation:

Is it:

- the rate of increase in the money supply? (e.g. for the last few years, inflation has been circa 16% per year)

- the rate of increase of consumer prices? (nobody knows, thanks to the fudged weighting and selective inclusion of items in the CPI)

Which one do the markets use to guage it, or do they realise that any official data is fiddled nonsense and so mostly ignore it?

What do the Government mean by inflation?

What does the BOE mean by inflation?

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