Flipping heck - from 1.1 to 1.5 % a cool rise of 36% in inflation last month.

If this starts repeating itself each month prices could go through the roof next year.

The problem is that if you print £200 Billion of funny money eventually it feeds into the system and forces prices to Zimbabwe levels.

The Bank of England will HAVE TO raise interest rates at its next meeting or the markets will fall massively.

This was always the danger......I mentioned before that food could rocket if inflation took a grip.

We have already seen Petrol rise 26% this year - in real terms it is even more.

We could see food rise by more than that next year.

We will have a TWO TIER ECONOMY - those who shop in pound shops and Tescos and Iceland. Then we will have those who can still afford the more upmarket shops and shop in Organic Markets or Waitrose and M&S.

The middle ranking shops will be purged from our High Streets leaving more rows of empty shops after Christmas.

Already many niche businesses are going under - today one of the UK's biggest Organic Dairy companies has gone under THE DAIRY HOUSE from Weobley with the loss of 30+ jobs and another related business the butchery associated with it has gone under as well. This company supplies all the stuff for Abel and Cole - some to Waitrose etc.

We are sitting at the top of the middle of a W shaped depression - but we could fall further this time.

Friends in the pub and club trade tell me that it there has been a massive drop in visits this last 2 weeks as people save a bit for Christmas.........The TV is full of Christmas adverts already as those left in the game battle for our money. Going to be carnage on the High Street this year - Iceland - Lidl and Aldi are offering incredibly cheap food compared to the main High Street supermarkets and will surely do great damage to Sainsburys - Asda - Tesco and M&S.

Both Iceland and Lidl have a LOBSTER ( whole ) for a fiver !!! and other amazing seafood and meat products ( frozen ) which will entice many to their aisles - as well as £10 champagne.