Inflation Stays At 4.5 Per Cent

Inflation Stays At 4.5 Per Cent.

The Consumer Prices Index (CPI) rate for May has remained unchanged from April’s figure of 4.5%.  The Retail Prices Index (RPI) has also stayed the same at 5.2% Bank of England governor Mervyn King had warned that inflation could reach 5% in the short term.

We assume Mr Cameron and Mr Clegg will be rubbing their hands with glee as this means public sector debt has been downvalued due to inflation over the course of a year in power.

Given India’s inflation figures of 9% and China’s is still climbing, global inflation is here to stay for we suggest 10 years.  A very simple way to downvalue all your debt.

Expect a stockmarket boom for a few years and then a correction or even crash in around 7 years.