We've seen VAT rise by 2.5% this year, so that's pretty much half of the inflation accounted for.
George Osborne is facing criticism for the government's VAT rise, which came into force today.
Nor is it going to diminish a VAT rise.
He says the impact of the VAT rise will drop out of the comparison.
Optimists claim that the economy is strong enough to shrug off the VAT rise.
The government claims that the alternative to today's VAT rise is bigger spending cuts.
Do they just think we are so stupid that we won't notice the VAT rise?
A VAT rise would be a good thing.
The VAT rise has put the prices up by 50-70p plus though which is annoying.
They should think again about their plan for a £13bn VAT rise in just three weeks' time.