Inflation crosses 'very dangerous' double-digit threshold

This double-digit rise is the highest annual increase since 1986 and has been driven by a 30% hike in the amount firms pay for their raw materials and record oil prices. Commentators are worried costs could be passed onto consumers who are already suffering, with consumer price inflation at a 10 year high of 3.3%. Liberal Democrat shadow chancellor, Vince Cable says a damaging spiral of escalating prices and costs experienced in the 1970s and late 1980s could now be set in motion. “Double-digit inflation involves crossing a very dangerous psychological threshold. “In practice, the o...