The recently released National Statistics Office (NSO) report on the Retail Price Index (RPI) reveals worrying developments. Since February, the index has begun an upward trend and is increasing rapidly. Prices for the most essential items, including clothing and footwear, household equipment, home maintenance and food, are creeping up well above three per cent. These levels are surely a cause for concern. Unlike children who can hide under the blankets to escape the wrath of an imaginary monster, inflation cannot be avoided. It drives lower-income earners deeper down the poverty trap. Uncontrolled inflation terrifies economists. When economies are overheated, consumers’ purchasing power is eroded dramatically. Uncontrolled inflation has a tendency to set off vicious spirals. After a long period of near stagnation in prices and the receding of the pandemic, the rise in inflation initially suggested a return of economic growth. This provided some ground for cautious optimism. However, with inflation rising exponentially, it has become a global problem. A widely-held principle is that price rises of around two per cent per annum are considered relatively healthy. Central banks...