Prices are rising. The last inflation reading we have shows a 5.1 per cent increase in the price of a representative basket of goods and services. Inflation is forecast to rise further. These rises cannot be ignored. The sources of these price rises are, mostly, energy and supply chain constraints coming from Covid. The chart shows which elements are contributing to the overall change in the main measure of inflation. There is quite a bit of double-counting in this chart, so don’t expect the totals to sum to 5.1, but you get the idea. The sources are mostly energy, goods,…

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