Not that long before the referendum, until just after Cameron had got in on his promise of a referendum and the markets realised the referendum was a real possibility the pound had been on a long term recovery from 2008.

The decline from 1.40 is all referendum.

The media has always been all over increases in inflation.

Again, not true. The pound had been stable against the Euro, there was no sense of a recovery to it highs of 2005/2006. It had it's peaks and troughs but it was averaging around the 1.16 mark. The referendum was called in mid Feb 2016 when the Euro was trading around the 1.3 mark, significantly down from it's highs of the previous summer. It doesn't change the fact that where it's trading today isn't unusual, it's pretty much where it's been on average for the last 8 years and I don't recall many cries of doom about it during that period.

They can keep screaming "We're Doomed!" all they like. Each time less and less people believe them. Stands by for the cry of "We haven't left Europe yet". That one is getting a bit dull too.

You can quite clearly see here:

http://www.xe.com/currencycharts/?fr...o=EUR&view=10Y

that the long term trend from the crash starting in 2007 up until the referendum became likely in mid 2016 was upwards.

How did you expect high inflation to start? 10% overnight? In May it was 0.3% now it's 1.2.

The government target is 2% which we haven't hit in donkey's years.

It's quite amazing how two people can see something so different in one graph That graph shows that, just as I've said, the average between 2008 and 2014 is around 1.16 to the pound. It also shows it had a rather decent climb in 2014 but has been declining since mid 2015. Which is, in my opinion, quite normal behaviour for a currency. What part of that graph looks unusual to you? I guess I'm struggling to understand why people think the current exchange rate of 1.19 is newsworthy when it wasn't newsworthy in the previous times it's been at, or below that rate in the 8 previous years?

Just wait until the day A50 is invoked.

It took 5 posts. You are slipping

Sneer all you like.

I will be proved right.

It's the modern world. If it doesn't happen immediately it's not happening. Well the world hasn't changed a sterling crisis is a sterling crisis. We know what happens in the years afterwards. The fact that the pound has fallen as it has against the dollar and the nonchalant way it has been dismissed is something that no doubt will be talked about in years to come. Why? In previous decades this would be front and centre of news. The fact that over 50% voted for it is probably the answer.

Irrefutable. We have experienced a massive devaluation and there is worse to come.

Not an answer to the question put, how do you expect high inflation to start?

Er, any trend would have an average.

Mid 2015 was when the referendum became likely. And yes, responding to events is normal for a currency, long term rise from 2008 to mid 2015 as the UK economy recovered then decline as shooting itself in the foot became more likely.

It's newsworthy because it's against the previous trend. It was newsworthy when it fell to 1.19 in 2008.

That would be nice for you, and like a broken clock there is always a chance one of these times you will be right! Am rooting for ya kiddo!

^ No, just more Leave denial. A mild devaluation is one thing but the pound crashing and losing 20% of its value is another thing. Businesses and consumers will then be hit hard by increased fuel prices which are priced in US dollars), necessary imported components, increased imported food costs and so on which all leads to inflation and erosion of wage power as well as hurting businesses.

Indeed, I know of a transport company where no one's going to get a pay rise in 2017 because of increased fuel costs resulting from the Brexit vote.

Just why does voting Leave = complete economic illiteracy and denial?

You are either an optimistic genius or a fool. I am neither.