UK Inflation, Government Induced
The Financial Times has an article on “UK inflation Hitting an 8 Month High”. Splashy headline. All kinds of stats. The real meat isn’t until the middle and end of the article.
“Inflation excluding indirect taxes rose from 1.6 per cent to 2 per cent in December, signalling that although price pressures increased in the month, inflation looks a lot weaker once the rise in VAT in January 2010 is cut out.”
There has been an increase in the cost of food and energy, but most of the increase can be explained by government taxation. The British have pursued a loose monetary policy, our own Fed took their cues from the Brits, and have increased taxes to pay for it. Tax and spend at its finest. Let the commoners pay.
Read more at Points and Figures
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