'The BBC have excelled themselves this lunchtime. They report that "Consumer Price Index (CPI) inflation rose 0.6% last month, taking the annual rate up to 2.9% from 1.9% in November." but it's not one of the main headline stories and although the article contains such information as, the very scary, "That was the biggest monthly rise in the annual index since records began and exceeded the City's expectations for an increase to 2.6%." and "This was a rise from 0.3% in November, and also constitutes the biggest monthly rise in the annual rate of RPI inflation since 1979." The BBC are quick to list the reasons why we should not worry and so provide their Labour government with excuses:It looks as though my prediction came true; but was it that hard?
"The annual increase in CPI mainly came about because of a number of unusual factors that had depressed prices a year earlier."
I would suggest that such terrible economic news under a Conservative government would have received somewhat more complete coverage, more wailing and bemoaning the economic disaster and interviews with the opposition. However under a Labour government all is peace and quiet, don't scare the population especially this close to an election.
In fact this news means that we are just starting on the path to traditional Labour high inflation, in fact stagflation which I and others have been predicting for quite some time now. Don't expect to see or hear Robert Peston or Nick Robinson discussing Stagflation any time soon, after all there is a general election to be secured for Labour first. As I have said before, there is still time to buy gold (and silver). '
Tuesday, 25 January 2011
Compare and contrast
The BBC are on the attack over the GDP figures released today, what a contrast with the way they reported economic news a year ago. Then I reported this: