This morning, UK inflation registered its lowest level since 2009.
The CPI chart looks like this, as May inflation fell to 1.5%.
In response to the inflation news, Prime Minister David Cameron tweeted the following:
There are so many problems with this tweet it’s hard to know where to start.
But we can start with the obvious that if ultra-low, declining inflation were a hallmark of “stability” and “financial security” then the 2008-2009 period would have been a golden age, rather than a crash.
Obviously the UK isn’t crashing now like it was in 2008-2009, but it still doesn’t stand to reason that there’s more “financial security for everyone.”
One look at exploding UK home prices will disabuse anyone of that notion.
Does that look like economic stability?
Furthermore, while prices of goods measured by CPI are growing 1.5%, wages are growing only at 0.9%, so workers are still struggling to keep up.
So no matter how you cut it, Cameron’s comments make him look totally foolish.