One of the ways inflation can damage the economy is by prompting politicians to buy into economic delusions in response.
Case in point: The Financial Times and BBC reported that the British Treasury has been pressuring grocery chains to adopt “voluntary” price caps on staples such as bread, eggs and milk as part of the government’s response to price increases worsened by the ongoing conflict in Iran. The government has reportedly threatened to move forward with additional regulatory interventions — acknowledging they will be financially damaging to grocers — if retailers refuse to cap prices.
