July's inflation numbers are out.
CPI: 4.4%, up from 3.8% last month
RPI: 5.0%, up from 4.6% last month
The current base rate you will recall is 5.0%. The Bank of England left it untouched at its rate-setting meeting earlier this month.
What does this mean?
Well, if you're a taxpayer, you can no longer take your savings to a bank and deposit them for more than their value will go down due to inflation.
I've blogged before that UK inflation is out of control; really I'm just documenting the decline now.
One might ask the question: why is the Bank of England not doing anything to stop the problem? Why haven't they increased interest rates? The answer is pretty simple and think I may have mentioned it before. They kept interest rates far too low over the 1997-2007 decade so that New Labour could tax and spend with gay abandon and now when they badly need to raise interest rates they can't because it would force too many people into bankruptcy.
Lastly, watch the US dollar, it's starting to rise against sterling...