Here's something I suddenly noticed:
Not a fluke:
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http://inflation.iamkate.com/ |
The same newspaper now costs 70p - equivalent to 168 old (pre-decimal) pennies.
That's not particularly freakish: using the site linked above, the general rise in inflation between 1914 and now means £1 then was worth £109 today.
War's effect on inflation:
1914 - 1918: 51% increase.
1939 - 1945: 51 % increase.
The "oil shock" of the 1970s was war by another name:
1974 - 1978: 94% increase.
But inflation is not inevitable.
In 1800, midway through the Napoleonic wars, prices surged 36.5% - but actually fell again over the next 15 years.
In fact, between 1800 and 1900, prices fell overall by 11%.
Money used to be a good store of value, when we concentrated on trade and industry, not war.
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