Recession over but the spectre of inflation looms

OK So whilst the growth in the economy was less than stellar and certainly less than the predictions or even hopes of the economists... GB Plc did grow last quarter. See graph from the BBC. However reports had been expecting a 0.3% rise or some hopefuls wanting 0.4% so the lacklustre 0.1 is disappointing but a start none the less.  Certainly one report I heard declared that GB Plc is the last G8 country to emerge from  it's deepest and longest recession since the war - grrrr!


However despite the growth and the positive news cycle, we should remember that some of that growth has been spurred by decent Christmas sales and apparently the VAT slash we had last year. That VAT rate has now returned to 17.5% and has added to the rise in cost of living that affects real people. The BBC handily provide a personal "Cost of living calculator"

I pumped my details, rent, eating out, energy bills into and it made a prediction of my own cost of living increase! Thankfully I received this month a cost of living increase in my pay back dated to September, so that helps!