Motor giants first big warning of inflation risk

LA has not been alone in warning that the biggest threat to our economy is long term hyperinflation. The risk is fairly low, the consequences massive.
Today GM & Ford have raised prices 5% due to the incredibly weak £.
Government said this would not happen as low demand would prevent inflation being an issue, there again they also claim Britain is best placed to deal with recession. Obviously currency dealers disagree, as do sane people.
Companies cannot just sell at a loss, they have to regulate their prices by supply and demand but also by cost.
So far we have seen wood suppliers raise prices in the UK, paper prices up around 5% and now Automotive manufacturers.

Is there anything Darling and the treasury can predict.
The only way the £ will strengthen is when the markets feel national debt and spending are realistic. this is going to take strong leadership, tough decisions and firm action.
If David Cameron is the next PM, there may be times when he is more like an Administrator than a PM as we have to settle our debts.