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Why hasn't QE caused inflation?

In_For_A_Penny_2 · 2014-08-27 10:32:22

Question is in the title. . . any thoughts? I'm still puzzled by it. Looks like Europe is having to deal with deflationary pressures and there seems to be an increasing movement to introducing quantitative easing in the Eurozone to try and head this off. With all that extra "money" in our economy why hasn't it resulted in…

Comments

prowla Posts: 14,317 Forumite

28 August 2014 at 9:10AM

Clifford_Pope wrote: »

Yes, I find petrol prices have fallen. Must be something wrong with the inflation figures.

Yes, petrol took a huge jump in price and then eased back a little.

If you spend most of your income on petrol, then it's not increased at the moment.

If you commute by rail then it's about to go up by a lot.

If you go shopping, you can't fail to notice that prices are up, for instance a loaf of bread has gone up by about 30% in the past couple of years (£1 -> £1.30).

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