OK, I'm a bit late this month, but better late than never.
No wonder Mervyn King was smiling at Wimbledon this week. Because he's managed to get down UK inflation to a measly 16.6%, when Maturin Towers did think three months ago it would be over 20% by now. These 'Black Austrians' in charge of the central banks, really do know how to cook their books to fool most of the people most of the time, so fiduciary credit must be given where fiduciary credit is due.
(Though of course, Jamie Whyte is still less than impressed.)
Looking at these figures, the 'commercial' banks must be hoovering up an awful lot of quantitatively counterfeited cash from all of the recent bond auctions. When this cash tsunami finally breaks out, as it eventually must, then watch that 16.6% zoom over the 20% line and perhaps into the territory of 30%. We spent most of the last decade with M4 inflation at around 10%, building up the Brown Bubble, so heaven knows how much damage is being done even at this re-bubble inflation level of 16.6%.
Link to BoE May Inflation figures
Link to previous April 2009 M4 figures