I went to a presentation by a fund manager about 18 months ago and one of the topics addressed was that of inflation. He detailed that he had concerns about the re-emergence of inflation and that it was 'a lonely corner' when in discussion with other market professionals.
How right he was! It was not difficult to make good real returns at that time and many could not see the potential risk. Many of you will have read the public letter produced to Gordon Brown by Mervyn King last week explaining why inflation was over 1% above the governments target of 2% pa. This is a requirement of the system and details why inflation has increased and explains this was partly caused by higher fuel prices, milk and furniture/furnishings. So if you are reading this from the comfort of your new sofa, then you only have yourself to blame! Gordon Brown responded with high f...
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