Comments on: Inflation’s gonna be OK, says Merv Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: Chris Thu, 12 Nov 2009 09:51:31 +0000 Tax rises and public spending cuts will take money out of the economy but the real ghoul in the cupboard is oil prices. In the midst of a recession its already nudging $80 a barrel.

As demand picks up in EU, Asia & America the UK purse is going to become trapped in a vice of fiscal measures and supply side inflation. Not only will the UK consumer have less to spend but what they can spend will cost more.