Sean O'Grady: Unalloyed good news for us and for the Chancellor

Share
Related Topics

For a long time now, no advance "insider" knowledge has been necessary to guess what was happening to British inflation; it would usually be a lot higher than anyone expected, higher than in Europe, higher than the month before, and way above where the Bank of England thought it would be, or indeed where it should be, that is to say the official 2 per cent target. So 4 per cent inflation, although double the target, is unalloyed good news and especially welcome for the 10 million households with mortgages, as it means the chances of rates being hiked next month is close to zero.

But it is even more fortunate for George Osborne's occupancy of No 11. This is a man for whom things seem to be going far better than he had any right to expect. The Bank of England is basically his "Plan B", there to keep the economy going with low rates while he goes about slashing borrowing. The inflation number makes it much easier for the Bank to keep its side of this tacit bargain. Today also sees the publication of trade data showing a marked improvement, overdue evidence of the "rebalancing" of the British economy back towards the serious business of selling things the rest of the world wants to buy.

This week too, has seen further generous endorsements of the Government from the IMF. Things could easily go horribly wrong: inflation will go up again before the end of the year as world commodity prices feed through; growth will remain pitifully weak; and youth unemployment will be a scar on the economy and the conscience of the nation. Yet, as the Coalition approaches its first anniversary, the economic implosion many predicted has not come to pass.

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

History Teacher

£60 - £65 per day: Randstad Education Liverpool: Job opportunities for Seconda...

** Female PE Teacher Urgently Required In Liverpool **

£120 - £140 per day: Randstad Education Liverpool: Job opportunities for Secon...

** Cover Supervisors Urgently Required In Knowsley **

£60 - £65 per day: Randstad Education Liverpool: Job opportunities for Seconda...

Java developer - (Intershop Enfinity)

£40000 - £50000 per annum + benefits: Ampersand Consulting LLP: Java Developer...

Day In a Page

Read Next
Oscar Pistorius is led out of court in Pretoria. Pistorius received a five-year prison sentence for culpable homicide by judge Thokozile Masipais for the killing of his girlfriend Reeva Steenkamp  

Oscar Pistorius sentence: Judge Masipa might have shown mercy, but she has delivered perfect justice

Chris Maume
Oscar Pistorius at the High Court in Pretoria  

Oscar Pistorius has been sentenced to five years in prison - but what then?

Rosie Millard
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Let's talk about loss

We need to talk about loss

Secrecy and silence surround stillbirth
Will there be an all-female mission to Mars?

Will there be an all-female mission to Mars?

Women may be better suited to space travel than men are
Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

'They poured water on, then electrified me...'

If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
James Wharton: The former Guard now fighting discrimination against gay soldiers

The former Guard now fighting discrimination against gay soldiers

Life after the Army has brought new battles for the LGBT activist James Wharton
Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

Panic over Ebola threatens to infect the midterms

Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
Premier League coaches join the RSC to swap the tricks of their trades

Darling, you were fabulous! But offside...

Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

How to dress with authority

Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

New book on Ian Curtis sheds fresh light on the life of the late singer

'Joy Division were making art... Ian was for real' says author Jon Savage
Sean Harris: A rare interview with British acting's secret weapon

Sean Harris: A rare interview with British acting's secret weapon

The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

Tim Minchin interview

For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
Boris Johnson's boozing won't win the puritan vote

Boris's boozing won't win the puritan vote

Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

Tim Wheeler: Alzheimer's, memories and my dad

Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album