A rate rise is inevitable

 The March CPI was released yesterday.

Here are a few reaction:

• Greg Jericho
• Stella Huangfu
• Mark the Graph

I reject Jericho's argument and am fully in agreement with both Huangfu and Mark the Graph.

Why you ask?

I am old enough to remember the oil shocks of the 1970s and 80s. ( so is John Quiggin). I reemember the second and third round effects that embedded inflation that took years ( a decade?) to reduce and then it took a nasty recession.

I favour rates rising to 4.5%.