The Office for National Statistics has reported a sharp fall in the Consumer Prices Index – down from 4.8 per cent in November to 4.2 per cent last month – was the sharpest drop in the annual rate since December 2008 when the UK was in recession and VAT was reduced.
Government ministers and propagandists will try to talk this up as a sing that the economy is starting to recover. We should be wary however, in the current economic circumstances a drop in inflation, especially one this rapid in what is traditionally the best month of the year for retailers, is not good news …
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