Thursday, January 24, 2008

Inflation 2%???

The Government keep telling us that inflation is at 2%. I wonder whether this is in the hope that if they keep saying it they will convince some people to believe it. At a meeting to discuss further increases in the Police Precept element of Council Tax in Flintshire a local man said clearly that in the engineering business that he worked in inflation was running at 7%. The police authority clearly stated to keep their budget at a "like for like" level this year it would need a 10% increase in funds, they have been offered 2.5%. I know that the price of bread from the local baker has gone from 92 pence to 104p, butter has gone from 71p to 85p, electricity and fuel prices continue to rise, as does the cost of heating oil. Watching Prime Minister's questions I was struck by the body language of those sitting behind the PM - their arms and hands crossed - no wonder they look defensive when the PM talks of inflation at 2%. Does the Government really think that the public believe them!!