Tuesday, 22 March 2011
Inflation numbers for February are out
Yes, that's the grim news. CPI 4.4%, up from 4.0% in January, and RPI up from 5.1% to 5.5% in February.
This is extraordinary. The BoE already had access to these numbers at their last rate setting meeting when they decided to continued their strategy of "vigilance" and masterful inaction.
If your savings are denominated in sterling you are being taken for a ride. You need to get them out, into Swiss Francs or Norwegian Krona or gold, anything which will hold its value. It's clear now that the Bank of England intends to let inflation rip.
This time last year the Bank of England gave a "central prediction" that today's CPI number would be 1%.
Their forecasting, like their control of inflation, is utterly inept.