Official: UK Inflation tops 20%

Today’s M4 money supply announcement: 18.8% year on year.  That’s a huge increase in money sloshing around.

The real figure for inflation is the difference between money supply growth and growth in the real economy.  But the latter is negative: -2.8% projected by IMF.  That makes the annual rate of inflation 21.6%.

With politically-distorted interest rates around 20% lower than that (-20% real interest), it’s no wonder noone wants to lend money!

Posted on March 19, 2009, in economy, inflation, uk. Bookmark the permalink. 1 Comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: