The governments chief secretary at the treasury has made it clear that the governments focus is still very clearly on keeping inflation well and truly under control. This has been announced as pound sterling has slumped to 1.12euro's and 1.49 USD. Commentators have been quick to point out that only 12months ago sterling was trading at 1.40 euro's and 2.06 USD.
The biggest losers in this collapse in sterling's value are holiday makers who in many cases booked Xmas period holidays up to 12 months ago, who are now complaining that they are facing bureaux de change rates as low as 1.05 euro's to the pound which after commission deductions means some holidaymakers are actually receiving less than 1 euro for every pound.
The winners however will be the exporters in industry who have suffered for many years as the high value of the pound was a major driving force in the contraction of the export business.
Economists have been quick to start ringing alarm bells as prices for food, consumer goods and fuel plummet saying it will make it difficult to raise interest rates again to bolster the pound in the short term.
My personal view on the situation is that the holiday makers should be thankful they can afford to take Xmas holidays this year. Many, myself included would just like to be able to have a job this winter without having to worry about how to pay the next mortgage instalment.
