Oil prices today hit $66 a barrel. It is a fresh six-month high and it is the biggest monthly gain in more than 10 years.
The recent fall in UK inflation is due to two factors. The first was the temporary reduction in VAT rates. That comes to an end in December. The second was the fall in oil prices. That has come to an end this month.
To summarize; the UK central bank is printing cash, the fiscal deficit is heading for 12 percent of GDP, and the price of oil is rising rapidly. Put it together and what have you got?