Wednesday, August 15, 2012
Inflation summary over only the last 5 years "Food price inflation has accelerated by more than 30 percent. Transport costs by 38.5 percent. Public transportation costs have sped 45 percent and home energy prices have risen at a breathtaking clip of 49 percent." . This is a bit worrying because in my view of the world if deflation is blocked purely by printing then the UK will end up in an inflationary spiral at a time when the BoE cannot raise rates as a policy response and must rely on capital controls. There must be a lot of people who have come to the conclusion that you cannot trust anything denominated in sterling.