The Government’s preferred measure of inflation, the Consumer Price Index,or CPI, recorded a 1.9% rise in March from 12 months before – just 0.1% below the Bank of England¹s inflation target.
This means the Old Lady might raise interest rates again and that might finally putting a stop to what¹s really driving inflation: the massive growth in the supply of money.
The M4 measure includes all notes, coins and sterling deposits held at UK banks. It’s grown more than 9% in the last year. No wonder the pound won’t buy what it used to!