Find out why actual inflation is much higher than the Government is telling you it is. Look around and lots of items are a lot more expensive than they were even in a year ago including food, copper, houses, bathrooms and dogs! Despite this the Consumer Price Index measures inflation at about 2%. We discuss why the Government want to keep inflation lower and what would happen if they told the truth. We explain how inflation is linked to social security and tax credits and any rise in inflation would cost the Government millions. Further the interest on the Governments debt would spiral out of control. Borrowing would also become much more expensive and if borrowing slows down there will be major economic ripples across the country.
