Matthew Hancock-Mp

Miliband can’t credibly complain about both inflation and growth

• 18 January 2011, 12:00am

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  Matthew Hancock-Mp

  Miliband can’t credibly complain about both inflation and growth

  

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Alexander Larman

What happened to the Rishi Sunak I knew at school?

Since interest rates take up to two years to impact on inflation, changing interest rates now cannot affect that inflation. What matters is not changes to the price level like these, but how much the rise in inflation persists and feeds into other prices and wages. But wage growth is historically low, not least thanks to the public sector pay freeze.

Rising prices are a concern for everyone on a tight budget. In the short term, tackling rising prices is intimately tied to the policy of getting growth going. Balancing the two is crucial. Complaining about both is fruitless.