MSE News: Inflation in surprise fall but prices still rising sharply

masonic

talexuser wrote: »

Is it not apparent (since it's gone on so long) that the government actually want a level of inflation that they think the voters will let them get away with in order to reduce the real debt long term as a matter of "secret" policy while publicly sticking to 2% with never ending excuses of "blips" and "special circumstances" etc?

"Never ascribe to malice what can be adequately explained by incompetence"

Reaper

talexuser wrote: »

Is it not apparent (since it's gone on so long) that the government actually want a level of inflation that they think the voters will let them get away with in order to reduce the real debt long term as a matter of "secret" policy while publicly sticking to 2% with never ending excuses of "blips" and "special circumstances" etc?

I agree. While the Bank of England has been saying publicly inflation will be low and even that deflation may happen their own bank pension scheme doesn't believe a word of it:

Mervyn King’s pension is 94.7% invested in index-linked, inflation protected securities, up from an already remarkably high 88.2% the year before.