Tuesday, January 16, 2007

Inflation going through the roof

Today has surelty smashed the illusion that Labour are compentent with the economy. The Consumer Price Index, which is the government's prefered measure of inflation, has registered another increase; it now stands at 3%. This is well above the 2% target set by Gordon Brown, but this only tells half the story.

The Retail Price Index, which everyone else really measures inflation, is up to a whopping 4.4%, the highest in 15 years. Why is it that we are given the 3% figure by the government instead of the 4.4%? Well, Gordon Brown shifted the focus about 3 years ago to convert the headline inflation to CPI rather than the naturally higher RPI. Undoubtedly this was done so the silly inference of having a continually lower rate could be retained.

Fiddling the figures is something Labour do very well; crime stats are regularly manipulated. However when the economy is suffering so badly I would hope people could see through the spin and realise that Gordon Brown is not the economic genius he is portrayed as being.

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