There are lies, damned lies and statistics. And then there are inflation statistics. According to The Times this week, the average 3.5% rise in council tax - as suggested by the LGA's survey - is three times the inflation rate, based, it claims, on a Treasury prediction that inflation will be '1%' in the next financial year. A rise of 3.5% is still a lot for people on incomes which are static or declining, but whether this is 'three times' inflation is debatable. Even taking into account the Treasury's constantly over-optimistic forecasts and even taking into account national newspapers' propensity to always over-egg any council tax rises, this predicted 1% inflation rate will still be a surprise for most of the public facing big rises from other parts of the economy.
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