Discussion
Don't we care about inflation anymore?
"The Consumer Price Index climbed 0.6pc in the month compared with February and is now 3.4pc higher than a year ago, figures from the Office for National Statistics showed today. City economists had expected inflation to come in at 3.1pc.
The weakness of sterling - it has dropped 25pc against other major currencies in the past three years - and rising fuel duty have stung British motorists with record petrol prices at the pump."
The Bank, which is responsible for keeping inflation as close as possible to 2pc, has kept interest rates at a record low of 0.5pc since March of last year.
Other measures of inflation also accelerated last month. The Retail Price Index, which is the measure widely used to calculate pay settlements - climbed 0.7pc on the month and is now up 4.4pc on the year.
http://www.telegraph.co.uk/finance/economics/76096...
Mervyn King seems to hit his target about as often as a West Ham striker.
"The Consumer Price Index climbed 0.6pc in the month compared with February and is now 3.4pc higher than a year ago, figures from the Office for National Statistics showed today. City economists had expected inflation to come in at 3.1pc.
The weakness of sterling - it has dropped 25pc against other major currencies in the past three years - and rising fuel duty have stung British motorists with record petrol prices at the pump."
The Bank, which is responsible for keeping inflation as close as possible to 2pc, has kept interest rates at a record low of 0.5pc since March of last year.
Other measures of inflation also accelerated last month. The Retail Price Index, which is the measure widely used to calculate pay settlements - climbed 0.7pc on the month and is now up 4.4pc on the year.
http://www.telegraph.co.uk/finance/economics/76096...
Mervyn King seems to hit his target about as often as a West Ham striker.
Edited by Fittster on Tuesday 20th April 10:05
Andrew[MG] said:
Inflation figures have been way out for the past decade anyway. There are some many good and services that are excluded and I don't just mean mortgage repayments....
I got really cynical when they started including things like USB sticks, because the cost of new technology doesn't tend to drop rapidly as it's adopted by more and more people does it.If they don't combat inflation with interest rates, things will get very exciting indeed.
You either keep people in their homes..... or f
k the pound so hard that everyone gets ruined with fuel and imports.
The latter has a bigger lag on it, which appears to be the chosen option.
I'm sure they can rearrange the basket a bit more to massage the figures.
....getting on with the job..
You either keep people in their homes..... or f
k the pound so hard that everyone gets ruined with fuel and imports. The latter has a bigger lag on it, which appears to be the chosen option.
I'm sure they can rearrange the basket a bit more to massage the figures.
....getting on with the job..
Fittster said:
Tangent Police said:
You either keep people in their homes..... ..
I was under the impression most houses in the UK aren't mortgaged. For those on a fixed income inflation is a killer.Pensioners vote, young people don't so a wise politican might demand an interest rate hike.
There are one hell of a lot of people who have borrowed beyond their means who would get smashed by a rate hike.
Got to keep the prices up, even if none are selling. It's the elephant in the room which will be instantly missed when it's gone.
JagLover said:
All the BOE and the government care about is trying to desperatly pump air into the deflating housing bubble.
All the while warning solemly of the dangers of deflation.
In my opinion, if the next government are actually serious about sorting the economy out, rates will rise. All the while warning solemly of the dangers of deflation.
Otherwise the IMF will come quicker. Where's that debt bombshell again?
Tangent Police said:
...You either keep people in their homes..... or fk the pound so hard that everyone gets ruined with fuel and imports.
The latter has a bigger lag on it, which appears to be the chosen option.
The latter also favours exporters over importers, something obviously better for the trade deficit.k the pound so hard that everyone gets ruined with fuel and imports. The latter has a bigger lag on it, which appears to be the chosen option.
Now is the time to buy a bit of gold and silver then. Post hung parliament, complete control over the deficit will be lost and then the st hits the fan. Only good thing with rising prices and taxes is property values will take a serious beating.
I think it would have been far cheaper to let the market correct itself in the long run as oppose to the government taking action to stimulate the system for a couple of years.
t hits the fan. Only good thing with rising prices and taxes is property values will take a serious beating. I think it would have been far cheaper to let the market correct itself in the long run as oppose to the government taking action to stimulate the system for a couple of years.
RichardD said:
Tangent Police said:
...You either keep people in their homes..... or fk the pound so hard that everyone gets ruined with fuel and imports.
The latter has a bigger lag on it, which appears to be the chosen option.
The latter also favours exporters over importers, something obviously better for the trade deficit.k the pound so hard that everyone gets ruined with fuel and imports. The latter has a bigger lag on it, which appears to be the chosen option.
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