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Such catastrophes might appear to have little relevance to Britain, where inflation has generally been under three percent for the last 30 years. But we should remember that as recently as the 1970s and early 1980s, inflation averaged 15 percent, reaching a brutal peak of 24 percent in 1975. Along with record borrowing and relentless industrial discontent, the continual price hikes were part of the economic malaise that led to Britain s portrayal as the sick man of Europe . Is it possible that those dark days of galloping increases could soon return? In the present expansionary climate of loose monetary policy, vast public debts and long cash print-runs by central banks, costs certainly seem to be edging upwards.

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