Spectre of inf lation threatens PM’s luck

BORIS Johnson has enjoyed such a winning streak that one might conclude he has a monopoly on black cats, horseshoes and four-leaf clovers

In a little over two years, he has won a thumping majority at a general election and successfully steered the country through the pandemic.

But is the Prime Minister’s luck finally running out?

Even after the sleaze row abates, Britain is on course to sail straight into an economic storm.

Not for a generation has inflation been a political issue in this country. Once again, however, rising prices are centre stage.

Of course, compared with the runaway inflation of the past, the spike to 4.2 per cent in October is small beer.

Still, millions of hard-pressed families (and especially pensioners) will feel a harsh squeeze in living standards over the winter – some facing a £2,000 hit.

Inflation also punishes the thrifty by eroding their savings.

To ameliorate this pain, the Bank of England looks certain to raise interest rates. But that also has severe consequences: jacking up mortgage costs, harming the economy and adding billions to Britain’s debt mountain.

On top of that, crippling National Insurance hikes planned for next spring – to pay for the NHS – will further hammer household budgets.

Combined, this risks providing a lightning rod for anti-Tory sentiment.

In that case, Mr Johnson will need all the political skill – and luck – he can muster to retain public confidence.

Squandering his advantage with a selfinflicted sleaze scandal would be a grave schoolboy error.