Sir – There appears to be a sort of flawed logic which is morphing into a pseudo economic law by default. I read the hypothesis recently by an investment strategist who should have known better. “Steadily declining prices can induce buyers to wait for still lower prices” and “Those deflationary expectations are partly responsible for the slow economic growth in Japan for 20 years”.

“This is illogical” as Mr Spock would have undoubtedly said had he seen it.

The greatest undisputed growth in the UK and most of Europe was from the Napoleonic Wars until “la belle epoch”, 70 years of mild deflation, just consult the charts. Undisputed. Falling prices are good for the consumer. How could it be otherwise? Only shysters want inflation, central bankers and politicians and their ilk. Inflation is a tax. Two per cent of GDP here, three per cent there. Skim the public, it’s easier than taxing and they do not even know it is happening.

Let me just give an example or two. Flatscreen TVs, computers, mobile phones and most white goods have fallen in price in recent years. People buy more often to keep up with technology, people might buy two when they would have only bought one or indeed none before.

Who waits 20 years to buy a new car? Whoever heard of a 20-year-old loaf of bread or pound of butter?

Similarly we must recognise self delusion when we see it on the assessment of quantitative easing. The UK government has printed £350 billion but there “has been no significant inflation”.

Let us remember inflation, even by the very dodgy CPI measure shows inflation at 130 per cent (RPI 150 per cent) since 2000. For most of us it is significantly more, car fuel and servicing 18 per cent from 2008-2011, similarly food and drink 15 per cent, gas, electricity and water 13 per cent.

These figures will be much more when the ONS release the figures for 2012-13.

Reserve assets for retail banks have soared. Answer the question where asset prices go when there is even a hint of tapering.

Stop the printing now and find out what happens to bond prices.

I suggest they would halve.

People, indeed people who should know better, do not look for inflation in the right places.

Wilful stupidity? Conspiracy? I suspect a mixture of both.

Godfrey Bloom, MEP for Yorkshire and North Lincolnshire