The British economy: no-one knows what's going on

An amusing couple of headlines that have to read together to appreciate, from this morning's news services on the UK inflation numbers.

I could launch into a rant on the "Daily Mailisation" of the BBC reporting, personified by the excruciating Mr Peston of the BBC.

A better message I think is that this is another example that no-one has a clue where it is going.  Having spent  the best part of the last 6 months with both corporate acquirers and investment banking, the only consistent theme is that no-one really knows what's going on.

Comments

[Jens]

I personally don't care how the UK government falsifies the numbers.

What is really going on: Can you name one (significant) item or service that you bought in the last 12 months that was more expensive than in the year before then? Looking at the things that I see around me/ that I bought, it looks like this:

Houses: Strongly Down
Cars: Strongly Down
Clothes: Strongly Down
Digital/Electronics: Slightly Down
Books: Same
Travel: Down
Food: Same/ slightly down

I personally spend some 10-15% less per month than I did a year ago. Overall, we are definitely in a period of deflation.