In his highly entertaining press conference yesterday, Ed Balls referred to “low inflation.” Today’s inflation bombshell makes such a claim impossible. Against expectations of 2.6% CPI for April, the figure is 3% – the highest rise in six years. This is hugely political. The cost of living is top doorstep issue – so it’s important to establish why Gordon Brown speaks with forked tongue when he blames it all “global turbulence”. Today’s inflation report repays closer examination. My thoughts:-
1) Plunging pound. Since Brown took over the pound has nosedived and is now 12% weaker in general – literally Black Wednesday magnitude. Who’s to blame for that? Opec? Bush? Brown has suffered so many other disasters that no one has commented on this huge inflationary pressure. Factory gate food and drink imports are actually up 15%, so worse is to come.
2) Soaring Food.
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