In reality inflation is already streaking ahead despite the official figures.
Food prices continue upwards and not surprisingly business has said that prices for imported goods (i.e. just about everything) will increase substantially due to the 30% drop in the value of the pound.
Just in case you don't get it, if the importer has to pay 30% more for the product he MUST put up the price you pay by a similiar amount or loose money on everything they sell (why would you do that? You're better selling nothing than selling at a loss).
You will have noticed if you've been paying attention that there are very few adverts for consumer goods now (like big screen TV's).
So unless you work in the public sector this is what you have to look forward to
Reduced wages, if you are lucky enough to keep your job.
Increased prices (up to 30%) for all imported goods.
Increased Council Tax (obviously)
Increased fuel bills (again)
Substantial interest rate rises very soon. GB needs to borrow so much foreign investors will need a strong incentive to lend to us. Expect to see a reduction in UK Credit rating.
Update : The Treasury failed to flog off all the Gilts offered at Auction today...
Increased Taxation. Tax is the only way the Government can pay back the money it is borrowing, especially since they have pretty much run out of things they can sell (gas, electricity, railways, nuclear power, post office, railways, PFI etc). At the same time Tax revenues from business have dropped like a stone, Banks won't be paying any tax any time soon, and the cost of unemployment benefits is rising.
House Prices continuing to fall because of reduction in real income and fear factor.
Private Pension values continue to throw themselves off a cliff.
Gordon Brown borrowing even more money in a desparate attempt to cling to power.
If you do work in the public sector, please don't complain. It really annoys the rest of us.
Get out the flares, it's back to the 70s.
(Just so you know the average wage for a nurse will be £31,974, a police constable £29,144 and a teacher £35,929)