DAILY MAIL COMMENT: Why we must douse inflationary flames

The resilience and flexibility British businesses have shown to bounce back from adversity in recent years could not have been more impressive.

Thousands of firms have survived unprecedented turmoil – the pandemic followed by fallout from the Ukraine war.

Yet even as they contend with punishing energy, raw material and staff costs, they should heed Bank of England governor Andrew Bailey’s call to keep a lid on prices.

With inflation ticking up again, he fears that this insidious scourge could become disastrously embedded – prolonging the cost of living crisis, triggering further painful interest rate rises and hitting the poorest most. And anyway, he says, inflation should plunge within months.

Unsurprisingly, his comments have drawn opprobrium from struggling businesses.

British businesses should heed Bank of England governor Andrew Bailey’s (pictured) call to keep a lid on prices

With inflation ticking up again, Bailey fears that this insidious scourge could become disastrously embedded – prolonging the cost of living crisis, triggering further painful interest rate rises and hitting the poorest most. Pictured: Bank of England

There is, however, anecdotal evidence that some companies have profiteered by hiking prices unduly under the cover of inflation – hammering the customer. That would be disgraceful and it should cease.

While Mr Bailey is on the right track, he still shares the blame for our predicament. By dithering over raising interest rates and keeping the Bank’s money-printers running too long, he threw fuel on the inflationary fire. He must double his efforts to get it under control.

Don’t punish parents

IT is a recurring theme. The Tories succeed at the ballot box when they stand up for middle-class families and strivers.

Yet too often the party is sheepish about defending these traditional constituencies.

True, the parlous state of the national finances means the Chancellor has to find money. But it is concerning that Jeremy Hunt is raising it in a stealthy raid on the hard-working families of Middle Britain.

When the £50,000 threshold at which parents lose some or all of their child benefit was introduced, it affected one million families. But after years of freezes, it has transformed into a stealth grab that drags 2.5million – or a third of those claiming the entitlement – into the net.

In the midst of a cost of living crunch, this penalises struggling families. And because it disincentivises parents from working harder, striving for promotion and earning more, it couldn’t be more anti-Tory.

The Chancellor should rethink this policy, or many of these bedrock Conservatives will wonder whether there’s any point in voting for the party at the next election.

Macron humiliated

THE 11th-hour cancellation of his state visit to France because of violent anti-government protests is a huge disappointment for King Charles (although history reminds us monarchs have suffered worse fates there).

But for Emmanuel Macron, it is an utter humiliation. The world sees the preening president surrendering to the mob – too feeble to keep his royal guests safe.

THE 11th-hour cancellation of his state visit to France because of violent anti-government protests is a huge disappointment for King Charles (although history reminds us monarchs have suffered worse fates there). Pictured: Emmanuel Macron

The anarchy does, however, put our own peaceful industrial disputes into context. And it illustrates that unrest over attempts to repair the public finances is not a uniquely British problem – whatever Labour and the Remainers like to say.

Keep Beijing at bay

CHINA is a grave threat to international order, hacking and stealing Western secrets and openly threatening to invade Taiwan.

So it is insane to let graduates from universities with links to China’s military work in sensitive positions for leading British defence and aerospace firms.

Such wide-eyed naivety goes back to David Cameron. Greedy for its riches, and with misplaced idealism, we have allowed this vicious regime unparalleled influence to our economy. We must wake up. It is a sheer folly to put short-term commercial considerations ahead of national security.