It is the government’s and Bank of England’s stated policy to maintain inflation at 2.0%, and the BoE’s monetary policy committee meets regularly to review interest rates and levels of Quantitative Easing (QE), as ways of maintaining that level.
However, with inflation now at 0%, the government’s professional liars have gone into overdrive to spin this as a good thing.
It’s a catastrophic failure and all the establishment spooks are closing ranks in order to make it sound like not a bad thing, and emphasising that it is ONLY TEMPORARY!
The Confederation of British Industry’s (CBI) Director of Economics Rain Newton-Smith:
“Despite inflation dropping to zero, it is unlikely we will see falling prices for a prolonged period, particularly as the pressure from lower oil prices fades.”
Rob Wood of Berenberg Bank:
“The UK can sit back and enjoy the purchasing power boost that low inflation today is bringing without fearing any of the sillier claims of what ‘deflation’ might bring, like households delaying purchases on the expectation that prices will be even lower tomorrow.”
There’s lots more on The Guardian’s live blog: