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Tuesday, 18 October 2011

More rip offs.

Merve the Swerve is up on the TV again pleading like a little kid for yet another go at controlling inflation

"Please please, let me have another go, I'll get it right next time"

So how much of a rip off has he presided over?

Well this graph starts off with the inflation target at 2.5% RPI, in May 1997. In December 2003, the target was changed to 2.0% using CPI. It looks at just how well the Bank of England tracks prices over time, rather than its year on year inflation figure. If the Bank of England does its job, then the line will be around zero.

It's not. Its over 7% above where it should be if it had done its job.