Mervyn KIng, the Governor of the Bank of England has had to write a letter to Alistair Darling, The Chancellor of the Exchequer to explain why inflation has risen above 2% this month.
Bpggartblog was able to see a copy of the first draft.

Dear Darling,

I am writing to inform you that inflation has risen above the 2% level that you require me to keep within.

This unfortunate rise is due in part to the dramatic increase in the cost of oil and other fuel.
There has also been a similar increase in the cost of many basic foodstuffs, perhaps you hadn't noticed that butter has gone up by 30% in the last few months, and the cost of a loaf of bread has practically doubled over the last 9 months.
Add to that your latest excise duties on alcohol and tobacco and you can see that things are starting to mount up.
Oh, and we probably have stretched the credulity of the nation's shoppers to breaking point by the things we have been including in a typical shopping basket to keep the inflation index down, after all, there are only so many white goods, mobile phones, items of furniture and clothing that a household will believe it might be necessary to buy on a weekly basis.

I hope this clarifies the situation for you, but if you are still struggling, after all you are only in charge of the nation's finances, please don't hesitate to get in touch and I will try to explain in words of one syllable or less.

Yours truly

Merv

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