Inflation Is Tumbling This Week - Richard Murphy

21st May 2024

This week's inflation data will show what I have predicted for a long time — that without any help from the Bank of England, Rishi Sunak, or Jeremy Hunt, inflation is going to be back down to 2 per cent.

The inflationary shocks resulting from the start of the Ukraine war two years ago have worked through the system, and price increases have returned to a normal level.

But the question that begs is why do we use such a stupid target over which we have almost no control to manage the economy when there are so many better ones - like full employment, rising real wages, reducing inequality and real investment rates instead?

ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax'.