Don’t be fooled by the word ‘dropped’, inflation is still here. Prices are still rising, just by 1.4% less than they were in March.
In today’s Office for National Statistics (ONS) monthly stats drop, the Consumer Price Index (how inflation of goods is measured) was expected to lower to 8.2%, so this smaller dip is somewhat of a shock.
Inflation has not been below 10% since September last year. Progressing out of double digits is good, but the Bank of England’s target for inflation is 2% (with 1% leeway either way), so this figure is still way off.
The Bank of England’s best tool to combat inflation is the ‘bank rate’ (or ‘interest rate’). This currently sits at 4.5%, and it is used as a disincentive for taking out loans and an incentive to save.
This time last year the bank rate was at 1% , it has only risen since then. The last time bank rates were this high was November 2008.
One of the biggest indicators of the damage still being done by inflation and the turbulent economy are the strikes, which continue across the country.
ASLEF train drivers will strike on 31 May and 3 June, RMT railway workers will strike on 2 June, and Prospect-represented civil servants will strike on 7 June, continuing to cause disruption and prove their worth.
Those who show their discontent by obstructing ‘key national infrastructure’ such as railways and motorways may face the wrath of the Public Order Act so strikers and protesters alike must be careful, even though the government claims the Act only targets a ‘small minority’ of protests.