Inflation

Women make 97% of all purchases; For instance Lesley regularly visits the supermarket and the Trafford Centre, I never go. The last thing I bought was a £20 pair of running headphones off ebay. She, like most females will know that the prices of things have been going up. But even I know prices have been ramping up because I do buy diesel on a regular basis.

Rising inflation is usually controlled by higher interest rates. But as I have said in an earlier blog, it’s not our inflation so raising our interest rates will not help fight it.

In a time of higher than average inflation there are winners and losers. The losers are the savers who can’t get a risk free return higher than the level of inflation and so their life savings are steadily eroded. The winners are those with a high variable rate mortgage who’s interest costs have come right down and of course anyone else who owes a lot of money. That would include the Government then. We can never repay our debt but we can allow inflation to steadily erode it away.