Not sure I care anymore. The UK is for the wealthy only and we can only try to struggle through, whether it’s through inflation, poorer services or more tax. Until we address the power dynamics, wealth inequality and tax havens (City of London, Jersey, Guernsey, etc), I could nor give a flying fuck what inflation is quarter to quarter. Prices and housing costs are already fucked
The reason things feel bad at the moment is in large part because of 3-4 years of sustained high inflation. That’s why everything seems expensive. A few years of low inflation and productivity and wage increases, could get us back on track.
Is that good? I never know
It means prices are going up slower so it’s good. Though note this is an average so the price raises apply unevenly.
Its 3% or so. No it isnt good.
3% is fine. The Bank of England’s target is 2%, but there’s a margin within which things are OK. The Bank only has to explain what measures its taking to correct inflation if it’s more than one percentage point off, so 3% is just about there. Worldwide, central banks tend to have target ranges that start at about 2% and go up to 4 or 5% (figures obtained from intense wikipediaing).
And for reference, you can see the UK’s historical interest rates here.
Going in the right direction does not mean its good.
When people hear “good news” about inflation they expect prices to be stable*, and they just arent yet.
*or go back to how they were, which is a problem the boe alone cant be expected to educate on.
I think it’s pretty clear people want prices to go back to what they were. You hear it in the way people talk about the government and how “nothing’s changed”. Things have changed, but the thing people want to change is the cost of living, and that certainly has not gone back to what it was.
With 3% inflation, prices are pretty much stable, though. Inflation in that region does not cause the same kinds of instability and problems that the higher rates we saw cause.
