As forecast here, UK inflation is high, rising and persistent, owing to the weakness of sterling. What will the Monetary Policy Committee tell us now? Why isn’t inflation subsiding already as they promised? Why is it so far over target? Was printing £200 billion extra cash to help the last government such a good idea?
We now learn officials were against some of the ways the last government decided to spend and spend in their last months. Money was only easy for them, thanks to QE. We need an explanation from the Bank of why they so readily assisted, and details of the heroic officials who tried to resist the spend and borrow plans of the dying days of the last administration.
We are learning the full price of all this as the weeks go by. Inflation is now 5.3% as measured by the RPI, at a time when wages are barely increasing. The squeeze is getting worse.