Energy firm Npower have definitely got into the post-Christmas inflationary mood. It has jacked that electricity prices for its domestic customers by a shocking 12.7 percent. Meanwhile gas bills will see a 17.2% increase.
The announcement from Npower is just the latest evidence of a growing inflationary surge in the UK. Private sector wages are growing at over 4 percent; food prices are up almost 5 percent; and oil prices are at around $100 a barrel.
Despite this surge in prices, the Bank of England are thinking of loosening monetary policy. As far as the Bank of England is concerned, there is only one price that matters - the price of property. That particular price is going the other way, and the Bank is not happy. But fear not; it has the antidote - it is preparing a series of drastic cuts in interest rates. So inflation can go where it likes, the Bank of England must save the housing market.