Its actually bang on 3.5% inflation. Now, if you currently look at RPI, you could argue we are getting completely shafted. completely completely shafted. M4 money growth stands at 14%, and I for one have noticed many increases in purchase price that funny old thing, CPI does not represent. IN fact, if you can look at what goes into the cpi basket and see that its fine if you are going out and buying a cheap widescreen tv or dvd player from tescos, but when it comes to food produce, the basics, we are all getting right royally shafted.
The fact that they give us sub-inflationary increases in defence spending at a time we are engaged on 2 fronts is an absolute disgrace, and one they should be ashamed of. But yet again, that great cash sink the NHS will get every penny spare.
I just worry that if we enter a UK recession, which, from where I am stood at the moment is looking fairly likely, it isnt education or health that will suffer.
