Tuesday, 15 December 2009

Inflation is on the rise

The inflation numbers for November are out. CPI is 1.9%, up from 1.5% in October, and RPI has risen by a massive +1.1% in a single month at 0.3%, up from -0.8% in October.

And the big inflation boost we can expect in a couple of weeks, the raising of VAT from 15% to 17.5% hasn't even happened yet!

The time is approaching when the BoE will have to raise the base rate to choke off inflation, and since we aren't out of recession yet that won't be good for the economy.


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