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  significantly more than expected....
  
  Inflation has been the least of the Government's worries of late but once again it is rearing its ugy head with the prospect of stagflation and a second dip recession. All problems I have warned about before.
  
  The CPI rose to 2.9% in December from 1.9% in November, the biggest monthly rise in the annual index since records began and more than expectations for an increase to 2.6%.
  
  RPI, including mortgage payments went to 2.4% from 0.3%. It was negative a few months ago.
  
  The underlying rate of RPI soared to 3.8% from 2.7% over the same period.
  
  I think that I was previously overly optimistic about avoiding the risk of hyperinflation but if nothing is done we could well be back in the realms of double digit inflation
  
  We are seeing the impact of loose money and it is quicker and worse than expected. This makes a tightening of monetary policy more important than ever, but the trick will be to do it in a way in which economic growth can also be encouraged. This is a difficult but not impossible circle to square.

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