Inflation is back, but Sunak is determined to take money out of our pockets

Inflation is back, but Sunak is determined to take money out of our pockets

Prices are climbing in the shops and consumers face an autumn crunch. Official figures show inflation rose at the fastest rate in a decade in August, as the impact of Covid-19 and Brexit drives up the cost of living. Surpassing the forecasts of City economists, the 1.2 percentage point increase in the consumer price index was the largest since Gordon Brown handed the Bank of England independence to manage inflation in 1997. At 3.2%, the CPI is now the highest since March 2012. Questions will be asked about how Threadneedle Street will respond. But there is a tougher challenge for the Treasury: is this really the right time to take more money out of people’s pockets? Despite soaring living costs, that looks like the plan, with the biggest ever overnight …
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