Research Director Sam Bowman’s comments on why the fall of inflation to 1.2% is good news were featured in The Mail Online.
The CPI figures are also good news for pensioners. In line with the the figures, state pensions will rise by 2.5 per cent or £2.85 a week next spring as the Government’s ‘triple lock’ ensures an increase of whichever is the greater out of average earnings, September’s inflation rate or 2.5 per cent.
Research Director of think-tank, the Adam Smith Institute, Sam Bowman, said: ‘It’s usually a bad thing when the Bank of England misses its inflation target but today’s figures look like the exception.
‘The fall appears to be due to supply side factors like cheaper fuel and food. On the demand side, inflation seems healthier and closer to being on target, and this is what counts from the macroeconomic point of view. All in all, good news and not something that should cause any panic.
‘What this does highlight is the absurdity of the government’s pensions triple lock. Pensions are now rising by 2.5 per cent, more than double the 1.2 per cent inflation rate.
‘This would be unsustainable and unnecessary at the best of times, but at a time when tax revenues are worryingly weak this is totally profligate and unsustainable.’
Read the full article here.