A recent poll found far more people blame the war in Ukraine for the cost of living crisis than lockdown. But the data are clear: inflation started as lockdown ended and no impact from the start of the war can be seen.
Dan Hannan has written a blistering column for the Telegraph, deservedly saying "I told you so” about the catastrophic impact of the lockdown policy on the economy, something he warned of in May 2020.
Inflation in Europe is soaring. Germany's rate is the highest in 40 years. The major culprit is the rising cost of energy – a trend which began last year, and has been exacerbated by Russia’s invasion of Ukraine.
A lesser known reason for the high price of gasoline is lack of refining capacity. And restoring that takes time. So even if oil production rises, the price at the pump is unlikely to fall dramatically any time soon.
Contraction of the net energy supply has been driving inflation for years. Printing trillions to pay people to sit at home is throwing fuel on the fire. 'Net Zero' axing of high density hydrocarbons is adding gunpowder.
Locking down for months on end and printing money to fund it can only lead to inflation, as the extra money chases fewer goods. This was entirely predictable and lockdown-loving politicians have only themselves to blame.
‘Partygate’ has distracted attention from the dire inflation statistics published today. Prices are now rising at an annual rate of 7% – the fastest rate in 30 years. And lockdown is to blame.
With the Government having borrowed another £24 billion in May and the national debt standing at £2.2 trillion, a former Chancellor has warned there is a "big risk" of inflation spiralling out of control.
