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You've just provided the most persuasive explanation there is as to why raising interest rates might not be that effective in bringing down inflation in the current situation. I think it will eventually (if it doesn't, it's for the reason you mention). They say it takes 9-12 months for the...

OK, I see things differently. Interest rate rises will reduce spending, and has been doing so for a while. You and I can revisit this in a year and see where we are. In your VAT increase scenario, all that will happen is it'll transfer money from certain participants within the economy...

My thinking is that, if you increase VAT, you increase inflation. Yours isn't, can you explain why.

Note that the government IS and HAS BEEN FOR A WHILE pulling certain levers to target inflation. They're paying those that work in the public sector significantly DEFLATIONARY pay deals but, mind you, they've been doing that for 13 years. There's a reason why anyone under 40, and increasingly...

Our BoE interest rates are higher than those set by the ECB would be the key reason ... ... and our interest rates are higher because our inflation is higher ... ... and our inflation is higher because of [ ] -- fill in the six letter gap

Yup. Legislative change will also assist with things, and has the additional benefit of something that can be done overnight. It's going to take decades to claw back the shortfall in new housebuilding, on the other hand.

They were, but that won't wash with Uncle C, who thinks he's had it tough and the rest of us are a bunch of lefty snowflakes, and will trot out plenty of suspect statistics to make his case.

You'll see the effect, but it is a delayed one. Resolution Foundation are today reporting that those taking on new deals will be paying an average of 3k extra p.a -- and the figure that are renewing between now and the end of 2024 is 2.4m. That's money going into mortgages that's not going into...