Inflation: there's a vital way to reduce it that everyone overlooks – raise productivity

Inflation has become one of the great issues of our times. The UK’s is the highest in the G7, weighing in at 9% a year according to the most recent figures on consumer price inflation.

When you look at the other common measure for prices, retail price inflation, which adds mortgage rates into the equation and is also calculated a little differently, it is even higher at 11%. This is important because RPI is used for raising prices across a range of items, from train tickets and mobile phone contracts to student loans.

The question of why inflation is so high is well rehearsed. The initial impetus came from greater demand, but it is being further fuelled by supply issues.