Welcome to the Wonderland world so familiar to Alice.

At one particular Prime Minister’s Questions a few months back a our Great Leader laughingly (crises seem to bring out the joker in our Great Leader) admonished our pigmy Leader of the Opposition for having the temerity to worry about inflation.  He does not understand he said, “its deflation” we have to worry about.

Paramedics required to calm Labour backbench hysteria.

Today, as the Bank of England continues in its frenzy of printing money, the rate of inflation as it affects people in the real world – as opposed to the fantasy one our Great Leader is comfortable with – actually goes UP!

And not by the odd point but by two whole points from 3.0 to 3.2. Coffee House touches on the point but does not really press on just when the BoE might have to start raising interest rates.  My uneducated guess is just before June 2010.  Oops!

It is perhaps wholly apposite that on this day the Great Leader, our esteemed Prime Minister, the foremost exponent of political prestigitation we have perhaps ever seen, should set off for a tour of South America, that continent symptomatic of Banana Republics.