The menace of inflation Inflation, we're told time and time again, is a relic of the past. The economic orthodoxy is that we live in a low inflation environment, with low interest rates to match. Factor in mortgage interest payments and the number is only a little higher. This is a long way from the double-digit inflation we experienced in the 1970s, and saw again, albeit briefly, in the late 1980s.
Low inflation leads to stability and is generally seen as a good thing.
Governments on both sides of the political divide have made much of their ability to tame the inflationary beast. Evidence is growing, though, that even if the beast is tamed, it is certainly not dead. Two sets of economic figures, covering retail prices and house prices, suggest it could return. And research carried out by the British Retail Consortium suggests that after a year of falling prices on the high street, they are now starting to rise. If you are having trouble with these broadcasts, you may have an outdated version of Real Player.