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Thursday, January 20, 2011

Inflation is great for the young and bad for the old

The UK has a notional idea that inflation should be 2%. It long ago chucked that goal in the waste bin.

Yesterday we learnt that CPI annual inflation – the Government’s target measure – was 3.7% in December, up from 3.3% in November.

Like quoting ‘averages’ - it is pointless having one figure of ‘inflation’. As Age UK has been shouting – inflation for older people is much higher.

Sadly there is no appetite for tackling inflation that has the convenient result of burning debt, both for Government and individuals. If you have wealth, it has the opposite effect. Who has wealth in the UK?

Whilst the media keeps muttering on about the way older people are unfairly treated by being given bus passes and heating allowances they are strangely silent about the much greater inequality of allowing inflation rip. Dick Stroud

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