averaged over 13 per cent per year during the 1970s, peaking at 27 per cent in 1975. In the 1980s inflation averaged 7 per cent per year.
Between 1993 and 2003, inflation hovered between 1 and 4 per cent per annum, and averaged 1.2% between 2000 and 2005.
All kinds of things affect inflation,some of them - like the price of oil (and consequently petrol) are beyond our direct control, and some of them can be controlled by government. One random example of how inflationary factors could be controlled by government (but sometimes aren't)is illustrated by the question of car tax dodgers. About 1 in 15 of the 33 million vehicles on the roads is untaxed, and in addition to the revenue lost because of that the DVLA estimates that 80% of untaxed vehicles also have no insurance. Uninsured motorists are ten-times more likely to be convicted drink-drivers and are many times more likely to be involved in hit-and-run incidents. These uninsured motorists add £30 to the average car insurance premium.
In 2003 the Bank of England’s target inflation rate changed to the Consumer Price Index (CPI), which arrives at the rate of inflation by looking at 56 separate component prices. The CPI has faults. It does not include house prices or council tax, but it's useful because it is constructed on the same basis throughout Europe. Accordingly it provides an objective comparison of Britain’s inflation record relative to Europe.