Inflation on the increase

[The Prophet]

The rate of inflation rose to 4.5% in April, the highest figure since October 2008.

Bank of England governor, Mervyn King blamed the Vat hike, higher commodity prices and rising import prices due to a fall in the pound  for the rise.

[Albert]

I wish he would raise interest rates!  Inflation is eroding my savings.

For every £1000 I have it will only be worth £950 in a years time.

[Banjo]

Inflation set to reach 5%
In the year to April, inflation measured by the Consumer Prices Index (CPI) was 4.5%.
New CPI figures are out on Tuesday and many expect the rate to be unchanged.

Howard Archer of independent consultancy IHS Global Insight, stated he "would expect inflation to be unchanged in the year to May and it could well reach over 5% before the end of 2011, partly due to higher energy bills".

[Albert]

It is about time Mervyn King did something about inflation and put interest rates up.

[Philofacts]

New data released yesterday indicated Inflation is steady at 4.5% during May.
The Consumer Price Index (CPI) has exceeded the Bank of England's target of 2% for 34 out of the last 40 months.
The Retail Price Index (RPI) which includes mortgage interest was also unchanged at 5.2%

[Albert]

The Bank of England are keeping inflation higher than it should be to eat into the national debt.
It could be worse I suppose, we could be Greek or have soon to be worthless Euros!

[The Prophet]

The experts in the monetary policy committee cannot 100% agree whether to put interest rates up or not
is a clear indication that they don't know what is happening to the economy.

As Bill Bonner recently put it:
"The Authorities look on like house cats watching the evening financial news.
They see the images. They hear the words, but they  have no idea what it all means."

[The Prophet]

A survey of people in the UK show that 40%  think inflation will be 10% in five years time.