This wasn’t part of the plan. Inflation rose to 10.4 per cent in February, up from 10.1 per cent the month before and well ahead of City expectations.
The acceleration is a result of ever higher food and non-alcoholic drink prices, which have reached their highest rate in more than 45 years. But more worryingly still, core inflation, which strips out more volatile goods such as food and energy, also rose.
High inflation, especially when driven by the cost of basic necessities, hammers consumers and in particular those with the least. Soaring food prices are also a blow for London’s hospitality industry, eager to draw diners back.
It is a huge challenge too for policy makers. The Bank of England is tasked with maintaining financial stability as well as dragging inflation down to two per cent. The chaos in the markets and the announcement that UBS will be acquiring Credit Suisse was seen by analysts as a reason to pause rates rises. But higher inflation may force the Monetary Policy Committee’s hands.
The Government is determined to halve inflation this year — it’s one of the Prime Minister’s five key promises. Without it, delivering any pre-election tax cuts is more difficult. Bringing inflation down without precipitating a deep recession remains Britain’s main economic challenge. It is one we are not yet meeting.
Capital of creativity
The capital is the best place on Earth to study the arts, according to the latest QS World University Rankings, a league table of universities comparing more than 15,000 programmes by subject.
The Royal College of Art was named the world’s leading institution for Art and Design for the ninth successive year, while the University of the Arts of London came second. University College London, meanwhile, was first for architecture and education. These results illustrate how vital higher education, and in particular the arts, are to London. Our city is a global creative capital, something not only to be celebrated but protected. That means the Government must not attempt to hobble the arts.
From the delayed plans to relocate the English National Opera to wider levelling down, we must instead double down and ensure there are the jobs and business thriving in the arts so London can retain this hard-earned status.
Farewell to a hero
What are you doing on March 29? Retired Flight Sergeant Peter Brown, one of the last black Second World War veterans who flew in a group dubbed the “Pilots of the Caribbean”, is being laid to rest after passing away at the age of 96.
Mr Brown died alone, and while a search is underway to locate any long-lost family members, there was a concern that his funeral may be sparsely attended. So if you are able, do head to the Mortlake Crematorium to pay your respects to a departing hero.
