Mervyn King the Governor of the Bank of England has told the Chancellor that inflation could well top 4% by the end of the year. This as he wrote to the Chancellor, Oh my Darling, to explain how he was to combat the rise in inflation to 3.3%.
Welcome to the start of Stagflation! Hold on to your hats we are going back to the 70s.
Inflation on the up, the economy stagnating, the unions flexing their muscles on pay disputes. Sounds like a newsreel from 1974!
The next year or so is not going to be pretty - anyone want a bet on $200 oil and 3m unemployed?
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