Inflated figures

Why should rising inflation be a surprise (your report, 20 August)?

If the Bank of England increases the money stock by £300 billion by creating money from thin air (quantitative easing) the dilution of existing money means that all money in circulation loses value, and goods cost more.

When we have lived beyond our means, our standard of living must fall back. Inflation is one way of achieving this. The only advantage of inflation is that government borrowing can be repaid at a discount.

Malcolm Parkin

Gamekeepers Road

Kinnesswood, Kinross