British inflation grows and grows. Is it temporary?
The British inflationary rate increased again in March, despite stagnant economic growth. Is it cause for worry?
Security cameras and a British Union flag are seen outside the Krishna Avanti School, before a visit by Britain's Queen Elizabeth, in Edgware, north London. British inflation rose again in March, despite slowing economic growth.
Toby Melville/Reuters/File
After falling for several months, the yearly consumer price inflaion in Britain rate increased again in March , from 3.4% to 3.5%..
So-called analysts however assure us that this is just "temporary".Bank of England Governor Mervyn King said in February last year after several years of inflation at 3% or more similarly that the high inflation then was just "temporary", and in February 2010 he similarly assured us that high inflation then just reflected "short-run factors".
English may only be my second language, but I am quite certain that "temporary" and "short-run" means in English that something will only last for a short period of time. Yet here we have Mervyn King and other Keynesians telling us year after year that high British inflation will only be "temporary".
The failure of British inflation to fall despite the fact that growth is stagnant or slightly negative is of course something that contradicts the Keynesian dogma that a weak economy must mean that inflation will be low (and that high inflation must create an economic boom). It is probably because the Keynesians refuse to believe that their theories true that they year after year embarrass themselves by calling something that has persisted for years and shows no sign of disappearing "temporary".