A new inflationary peak
So the latest ONS data puts May’s inflation at 3.3 percent – the highest figure since the current measure was introduced in 1997, and higher even than the 3.2 percent that many pessimistic analysts were predicting. Obviously, it’s bad news for consumers – if the official inflation figure is this high, you can be sure that the “real” inflation of day-to-day life is cripplingly bad. But worse is set to come. As we reported on Trading Floor, the CBI are predicting that inflation will remain above 3 percent for the rest of the year, and may even hit 3.8 percent. Politically, one thing to look out for is how this affects relations between the Bank and the Treasury. As Fraser wrote last
