Inflation measured by either the CPI or the RPI has risen to over 5% this summer and autumn and is at levels clearly inconsistent with price stability.
At these inflation rates the price level will double in less than fifteen years. The battle for price stability in the UK was fought over a prolonged period from the IMF programme of 1976 onwards and it seemed for a brief period in the 1990s and 2000s that the battle had been won.
The war, however, continues and there has been a significant rearguard action.
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