Inflation Cost UK GBP10bn
Published / Last Updated on 20/05/2013
Inflation Cost UK £10bn.
The Ernst & Young Item Club has produced a report showing that high inflation over the last 3 years has cost the UK £10bn.
Also in the report it showed that inflation had stayed at or above 3.5% instead of the Government target of 2%. High inflation will remain and is not expected by the group to fall below 2.5% before 2017.
The effects of high inflation has been seen everywhere with cost of food rising 40% in the last few years, also rising fuel cost, and education costs. For these reason the high street has suffered.
Our View
We actually see a sustained period of inflation for possibly 10 years as global central bank quantitative easing starts to 'bubble under the surface' and feed into World economies.