The UK government is continuing deficit spending while at the same time trying to keep interest rates low to avoid a housing price crash
Inflation, which measures the rate of price rises, fell to 10.1% in the year to March from 10.4% in February.
It was widely expected to fall below 10%, but food prices continued to soar, rising at their fastest rate in 45 years.
Falling inflation doesn’t mean prices are falling, but just that the rate of price rises is slowing.
The threat of an interest rate rise is now causing gilt yields to spike, adding to the losses of gilt holders.
Still trying to manage expectations:
It’s anyone’s fault but the governments 
Sterling crisis on the way?
