Wednesday, March 19, 2008

Inflation nation

One of the (many) great lies this government feeds the British people is the lie of inflation. According to all official reports and statistics the inflation rate is currently running at around 2.5%, but the reality is far different as anyone who shops regularly will know.

 

Even using the old Retail Price Index which suggest inflation is around 4.5% is inaccurate because the simple truth is that the essential every day items of food, housing and fuel have rocketed up over the last year. Many food items have increased in price by some 21-20%, housing costs - bumped by rising interest rates - have increased considerably while fuel has also gone up by around 10-15%.

 

The official rate of inflation is kept down by including such trivial items as CD's, digital cameras and other luxury items which have dropped in price - but it's all a fraud. By any real measure of the things that matter inflation would be running at around 12% at the moment - the sort of rate we have not seen for 20 years or so. People are struggling to make ends meet and it is only a matter of time before that filters down into increasing wage demands.

 

When that happens, things will turn ugly.

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