Why is Spain’s inflation so much lower than the UK’s? Because it stood up to business
The government seems to be claiming that it’s winning the fight against inflation. But we are not out of the woods yet. Inflation currently is still far too high and the Bank of England has today increased rates again to 5.25% and lowered its growth forecast. But it doesn’t have to be like this. The case of Spain is a great counter-example. Its inflation has just fallen to the 2% target. How is it that it has already achieved this important milestone?
The reason is more forceful management of the economy – the Spanish government took quicker, more concerted action than ours did.… Seguir leyendo »