So #inflation has now dropped to 3.9%, reflecting (if #economic models are correct) the #interestrates environment around a year ago (the time it takes interest rates to feed into the 'real' economy).
Given this trajectory (successive falls in inflation), we might expect the BoE to start to reduce interest rates.... but given the continuing rhetoric about 'worryingly high' wage rises, my guess is they will stick with them where they are.
What they want is a recession to 'discipline' #workers
@ChrisMayLA6
> Given this trajectory (successive falls in inflation), we might expect the BoE to start to reduce interest rates.... but given the continuing rhetoric about 'worryingly high' wage rises...
The whole idea that wage rises cause inflation has been studied and debunked so many times. At this point continuing to make the claim is pure propaganda.
Wage rises convert overproduction into economic growth, making them inflation neutral. Tax cuts OTOH are totally inflationary. As are excessive profits and rents.
#economics #inflation #TaxCuts #ExcessiveProfits #EconomicRents
Emeritus Prof Christopher May
Strypey