Douglas Carswell's Blog

Inflation rises. Bank of England credibility falls

As they merrily printed more money, the “experts” at the Bank of England told us not to worry about inflation. Deflation, chipped in the Treasury gurus, was the real problem.

Today we learn that inflation has jumped to 5.6 percent.   

Every time inflation has risen, we have been treated to another round of bogus excuses. Each month the Bank of England misses its target, we are told of another one off reason for the rise in prices. Ad hoc increases in food prices. One off hikes in fuel costs. The wrong sort of rain in China. Blah blah.   

How many excuses of the ad hoc variety do we need to hear before we accept that this is not an ad hoc rise in inflation at all, but a consequence of Bank of England policy?  If you print more money, the value of the currency already in circulation will go down. Prices will rise. 

Back in February, Adam Posen, who sits of the Bank's Monetary Policy Committee, was telling us he was not worried about inflation.  He might not be, but thanks to the MPC's inept monetary management many of my constituents are. 

In March, Mr Posen went so far as to forecast that inflation would soon be falling to 1.5 percent by the middle of next year. He hinted that he’d quit if he was wrong. 

How’s that forecast coming along? 

This blog has been warning about rising inflation almost every month for over a year; January 2011, February 2011, March 2011, May 2011, June 2011, August 2011 ...

Guido Fawkes, Daniel Hannan and Steve Baker MP have been consistently better at telling us what would happen next than many of those “expert” economists we have been paying to get things wrong. 

Time to fire the "experts" - and read up on Ludwig von Mises.

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