Inflation Falling Down to Two Percent

1993: Falling Down - Schumacher

Yesterday data about inflation, that is rather key to any forward-thinking financial planner, was published. This recorded the UK's rate of inflation in January 2012 at 3.60% (CPI) and 3.90% (RPI). These figures suggest that inflation is back under control, although frankly the maths behind the numbers would imply that inflationary figures were bound to reduce. Previously you may have read that a figure of 3% was mentioned for March 2012, well now the Governor  of the Bank of England (Mervin King) is suggesting that by the end of 2012 the figure will drop below 2%. This will come as a relief to consumers who have seen the prices that they pay for many items rise considerably, although I suspect that most of us never experience inflation quite in the same way the Government statistics suggest. Now I'm not sure what hacking rules apply to the Bank of England, but you can legitimately read the letter from Mr King to the Chancellor Mr Osbourne dated 13 February 2012. I think the Governor got a little carried away signing the letter. You can also see the Chancellor's response, in which he is a little more friendly and doesn't suffer from bigsignaturitis.