interestrateripoff Posted March 19, 2012 Share Posted March 19, 2012 (edited) http://www.telegraph.co.uk/finance/personalfinance/consumertips/9153586/Households-to-feel-the-squeeze-despite-inflation-falling-to-just-3.3pc.html Lower utility bills and discounting from struggling retailers are set to pull the rate of inflation down to a 15-month low tomorrow. The consumer prices index (CPI) is forecast to fall to 3.3pc in February, from 3.6pc in January, as energy cuts by E. ON and Scottish Power came into effect, but experts have warned the cost of living in the months ahead could be stickier than previously thought. Non-food retailers also continued to slash prices in the month, according to the British Retail Consortium, as they battled to pull in cash-strapped consumers. The dip in the CPI rate of inflation will continue the downward trend experienced in recent months and matches forecasts by the Bank of England, which predicted that the rise in cost of living would ease throughout 2012. There is no dip in inflation, prices are still going up. Incomes are still being squeezed. But thanks to our Orwellian media we get moronic headlines like this saying inflation has fallen to 3.3% which is still 65% above Mystic Mervs 2% inflation target (yes I know it's bad maths doing percentages like this). Edit http://www.bbc.co.uk/news/business-17442343 Inflation in the UK continued to fall in February, thanks largely to lower gas and electricity bills.Consumer Prices Index (CPI) inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics (ONS). Edited March 20, 2012 by interestrateripoff Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 19, 2012 Share Posted March 19, 2012 Cost of petrol could see this reverse pretty quickly. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 19, 2012 Share Posted March 19, 2012 Cost of petrol could see this reverse pretty quickly. Paradoxically, higher fuel prices are deflationary in the absence of higher incomes, since they crush demand. There's simply less to spend on everything else, most notably housing. I believe the disinflation being reported is genuine, and that the on-going risk to the UK continues to be a deflationary spiral, not a hyperinflation. At least until Mervo starts mailing out individual cheques... Quote Link to comment Share on other sites More sharing options...
Game_Over Posted March 19, 2012 Share Posted March 19, 2012 I thought we had killed the deflation myth. We will never get deflation because they will keep printing until we get inflation. What we actually have and will continue to get is STAGFLATION Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted March 19, 2012 Share Posted March 19, 2012 No delusion here in regards the ture level of inflation but some of the materials prices seen recently are ******ing frightening. Quote Link to comment Share on other sites More sharing options...
LJAR Posted March 19, 2012 Share Posted March 19, 2012 Prices going up and down is a symptom of inflation or deflation, but not the cause, this is the main issue that all the reporting isn't telling you. We have massive inflation, all the money that the BoE is printing is pushing up the price of stocks, houses, commodities etc to new highs. this wont filter through into the CPI until years down the line, if at all, due to competition and increased efficiencies driving down prices. Falling prices are a good thing, deflation is not the same as falling prices. Quote Link to comment Share on other sites More sharing options...
Little Professor Posted March 19, 2012 Share Posted March 19, 2012 Are we doing predictions? CPI 3.5% RPI 3.6% Quote Link to comment Share on other sites More sharing options...
zebbedee Posted March 20, 2012 Share Posted March 20, 2012 Paradoxically, higher fuel prices are deflationary in the absence of higher incomes, since they crush demand. There's simply less to spend on everything else, most notably housing. I believe the disinflation being reported is genuine, and that the on-going risk to the UK continues to be a deflationary spiral, not a hyperinflation. At least until Mervo starts mailing out individual cheques... Quote Link to comment Share on other sites More sharing options...
200p Posted March 20, 2012 Share Posted March 20, 2012 80p Litre petrol seems a long way a way. I think that was what it was when I joined this site. Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted March 20, 2012 Share Posted March 20, 2012 Paradoxically, higher fuel prices are deflationary in the absence of higher incomes, since they crush demand. There's simply less to spend on everything else, most notably housing. I believe the disinflation being reported is genuine, and that the on-going risk to the UK continues to be a deflationary spiral, not a hyperinflation. At least until Mervo starts mailing out individual cheques... Collapsing real disposable incomes caused by rising prices and pressure on wages due to the globalisation of labour markets seems to be our lot. Quote Link to comment Share on other sites More sharing options...
pyracantha Posted March 20, 2012 Share Posted March 20, 2012 Collapsing real disposable incomes caused by rising prices and pressure on wages due to the globalisation of labour markets seems to be our lot. In a nutshell. How fecked we are... Quote Link to comment Share on other sites More sharing options...
winkie Posted March 20, 2012 Share Posted March 20, 2012 Paradoxically, higher fuel prices are deflationary in the absence of higher incomes, since they crush demand. There's simply less to spend on everything else, most notably housing. I believe the disinflation being reported is genuine, and that the on-going risk to the UK continues to be a deflationary spiral, not a hyperinflation. At least until Mervo starts mailing out individual cheques... Yes, also companies, businesses and firms will have higher fuel expenses bills to pay so therefore will employ less people...existing staff to do more work and more unpaid overtime. Quote Link to comment Share on other sites More sharing options...
winkie Posted March 20, 2012 Share Posted March 20, 2012 80p Litre petrol seems a long way a way. I think that was what it was when I joined this site. Used to do 8 thousand miles a year now do less than 4....and my car insurance premium has been reduced because of it....am I better off? do I pay less tax? do I spend more money? Quote Link to comment Share on other sites More sharing options...
200p Posted March 20, 2012 Share Posted March 20, 2012 I'm sure most people have noticed fuel prices jumped this week. Unleaded in most places is selling for 140p/L. We've been used to 138p/L since Decemember. I used to own a bad boy BMW 3 series (feel the POWER!), it cost £45 to fill up from empty back in 2004. Today I own a Clio (as to me, it is car to go from A to B due to the "HPC education") it costs £30 to fill up from half tank. We're all better off now - waste not want not. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted March 20, 2012 Share Posted March 20, 2012 80p Litre petrol seems a long way a way. I think that was what it was when I joined this site. ~40p when we first went to Liters. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 20, 2012 Share Posted March 20, 2012 (edited) Is this the inflation thread now RPI moves from 3.6 to 3.4% CPI from 3.9 to 3.7% Not exactly earth-shattering. Merv's probably "surprised" Edited March 20, 2012 by rantnrave Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 20, 2012 Share Posted March 20, 2012 Al Jabeeba: Inflation in the UK continued to fall in February, thanks largely to lower gas and electricity bills. Consumer Prices Index (CPI) inflation fell to 3.4% in February, down from 3.6% in January, according to the Office for National Statistics (ONS). Retail Prices Index (RPI) inflation - including mortgage interest payments - fell to 3.7% from 3.9%. Inflation has been falling steadily since September and the CPI rate is now at its lowest since November 2010. Retail impact Discounting by retailers also helped pull the rate down. However, higher alcohol prices stopped the rate declining further. Analysts had expected a steeper fall in the headline CPI rate, to about 3.3%. "The Bank of England is hoping that it's going to fall to 2% by the end of the year," said Chris Williamson, chief economist at Markit. "The fact it's been a little bit sticker than we hoped this month really casts further doubt on the Bank's projection. "So this might be another case of the Bank being a little bit too optimistic of where inflation's going to go." Others were less concerned. "We thought the risks were that it would be a bit above the consensus, but in the scheme of things it's pretty much in line," said Ross Walker, RBS economist. Quote Link to comment Share on other sites More sharing options...
easy2012 Posted March 20, 2012 Share Posted March 20, 2012 There is no dip in inflation, prices are still going up. Incomes are still being squeezed. But thanks to our Orwellian media we get moronic headlines like this saying inflation has fallen to 3.3% which is still 65% above Mystic Mervs 2% inflation target (yes I know it's bad maths doing percentages like this). Let's rewrite the headline, The all items CPI is 121.8, up from 121.1 in January., so 0.7 / 121.1 = 0.58% or 6.9% annualised (remember that QE they just did few months back, plus the roll back of Xmas price cuts). Could have write February CPI inflation is 6.9% annualised. and The all items RPI is 239.9, up from 238.0 in January or 0.8% month or month or 9.6% annualised !! Now, keep doing deficit spending and printing money and pretend nothing happen... Quote Link to comment Share on other sites More sharing options...
winkie Posted March 20, 2012 Share Posted March 20, 2012 Is this the inflation thread now RPI moves from 3.6 to 3.4% CPI from 3.9 to 3.7% Not exactly earth-shattering. Merv's probably "surprised" 3.7% pay rises for some then. Quote Link to comment Share on other sites More sharing options...
FIGGY Posted March 20, 2012 Share Posted March 20, 2012 How this for a double speak headline on Yahoo Inflation eases more slowly than forecast http://uk.news.yahoo.com/uk-inflation-eases-more-slowly-forecast-093406452.html Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 20, 2012 Share Posted March 20, 2012 (edited) Need to change the thread title to something snappier with figures at the start to drive traffic here. It IS the right thread Edited March 20, 2012 by SeeYouNextTuesday Quote Link to comment Share on other sites More sharing options...
Sour Mash Posted March 20, 2012 Share Posted March 20, 2012 Prices going up and down is a symptom of inflation or deflation, but not the cause, this is the main issue that all the reporting isn't telling you. We have massive inflation, all the money that the BoE is printing is pushing up the price of stocks, houses, commodities etc to new highs. this wont filter through into the CPI until years down the line, if at all, due to competition and increased efficiencies driving down prices. Falling prices are a good thing, deflation is not the same as falling prices. Indeed. Inflation/deflation is a measure of money supply vs goods and services available to purchase with that money. Ratio of "money : goods & services" increases -> Inflation (typically manifests itself as higher prices as money buys you less). Ratio of "money : goods & services" decreases -> Deflation (typically manifests as price drops as money becomes worth more). There certainly hasn't been any appreciable drop in overall money supply over the last few years and the percentage of base money in the system has increased markedly leading to a potential for a rapid increase in supply down the line. On the other hand I suspect that goods and services have fallen off quite sharply. Hardly any surprise therefore that the CPI and RPI indices have been consistenly high, the markets have enjoyed a bull run, commodities have increased in price, energy has increased in price, gold has risen strongly. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 20, 2012 Share Posted March 20, 2012 (edited) Discounting on digital cameras and air fares.... Out on the high street the shops do seem to be discounting heavily. Anyone in the know? Are the rents due? Most stores I visit seem to practice dynamic pricing but it's not realistic market pricing. Superdrug had a branded shaving gel for £1 the next week the brand had been jacked up to £6. It's the same with Listerine mouthwash there. HMV used to float the prices around instore intra week. Edited March 20, 2012 by Ash4781 Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted March 20, 2012 Share Posted March 20, 2012 Discounting on digital cameras and air fares.... Out on the high street the shops do seem to be discounting heavily. Anyone in the know? Are the rents due? Most stores I visit seem to practice dynamic pricing but it's not realistic market pricing. Superdrug had a branded shaving gel for £1 the next week the brand had been jacked up to £6. It's the same with Listerine mouthwash there. HMV used to float the prices around instore intra week. Yes, due this week some time I think. Quote Link to comment Share on other sites More sharing options...
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