The bottom line is that inflation squeezes citizens’ spending, with inflation running at a higher rate than pay increases, resulting from inflation pressures.
The reason we will get away with it again, as we did in the banking crash, is that there is so much deflation around, inflation is not a problem.
Unlike much of Europe, Britain has, thus far, dodged the deflationary bullet. But there’s no room for complacency.
Stable wages and steadily falling prices should be a welcome combination.