Frozen family budgets squeezed as inflation DOUBLES in two months

Daily Mail
"....Food price inflation has taken off again and, with the Asian economies recovering strongly, the upward pressure on both food and energy prices will remain strong.Similarly, there is now very little doubt that whichever party wins the expected May election it is a given that VAT rates will be lifted by at least 2.5 percentage points to 20 per cent as the government seeks to bring the public finances under control. The Institute of Fiscal Studies has gone as far as to suggest a 21 per cent VAT rate.But the greatest threat to longer term price stability is the Bank's monetary policy.In its efforts to refloat the economy, the Bank has held interest rates at 1 per cent and added some £200billion to the supply of money. ..."