And the Bank of England, whose mandate is to keep inflation at no more than 2%, are printing money - because otherwise inflation will be really really low ! But don't worry - it'll be back to 2% soon - Mervyn King says so.
Economist Shaun Richards :
I have looked back at the Bank of England’s past inflation forecasts for today to see how they compare with a level of CPI inflation of 5.2%.
November 2009 1.8%
February 2010 1%
May 2010 1.5%
August 2010 1.5%
February 2011 2%
These are estimates from the mid-range of its fan charts but as you can see any minor error in staring at the chart is dwarfed by the scale of the forecasting incompetence exhibited by the Bank of England. Apparently we are supposed to believe yet again that inflation will fall below target and only this month we required a further £75 billion of Quantitative Easing to stop a deflationary nightmare!