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Households To Feel The Squeeze Despite Inflation Falling To Just 3.3Pc


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#1 interestrateripoff

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Posted 19 March 2012 - 08:37 PM

http://www.telegraph...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...siness-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 by interestrateripoff, 20 March 2012 - 11:30 AM.

Proof that Brown had repeated IMF / OECD / BIS warnings over house prices and did nothing!!!
Looting: The Economic Underworld Of Bankruptcy For Profit
The exponential growth of debt and the unsustainability of debt
The logic of HPI @ 10% YoY means your £100k house would be worth £1.38bn in 100 years
Paying down my mortgage with money found on the street

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE
If DEBT is the problem REPAYMENT is the solution or you default

 

"The trouble with the world was that prices were so low that only the rich people could buy and the aim of the Conference was to raise them to a point where it would again be possible for poor people to buy something."

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

New digest on the credit crisis and economy Part2 Part 3

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#2 rantnrave

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Posted 19 March 2012 - 08:58 PM

Cost of petrol could see this reverse pretty quickly.

#3 zugzwang

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Posted 19 March 2012 - 09:49 PM

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...




zugzwang (n.) a situation where every possible move or decision is a bad one, or one that will result in damage or loss.

 

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#4 Game_Over

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Posted 19 March 2012 - 10:01 PM

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

:blink:

#5 OnlyMe

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Posted 19 March 2012 - 10:06 PM

No delusion here in regards the ture level of inflation but some of the materials prices seen recently are ******ing frightening.
"Asians make things and sell them to Americans, who borrow money from their suppliers (on the inflated value of their houses) in order to continue living beyond their means. Asians take their profits and either relend them to Americans...or use them to buy more productive capacity, in America and elsewhere.

For those who wonder where this trend will lead, we offer a guess: The average American will be left with a shoeshine kit and instructions on how to say 'please' and 'thank you' in Chinese...."

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#6 LJAR

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Posted 19 March 2012 - 10:06 PM

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.

#7 Little Professor

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Posted 19 March 2012 - 10:48 PM

Are we doing predictions?

CPI 3.5%
RPI 3.6%

#8 zebbedee

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Posted 20 March 2012 - 01:54 AM

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...

:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:
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#9 200p

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Posted 20 March 2012 - 07:00 AM

80p Litre petrol seems a long way a way. I think that was what it was when I joined this site.

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#10 LuckyOne

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Posted 20 March 2012 - 07:29 AM

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.

#11 pyracantha

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Posted 20 March 2012 - 07:55 AM

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...

#12 winkie

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Posted 20 March 2012 - 08:01 AM

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. ;)
What you don't owe won't worry you.

Less can be more.

#13 winkie

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Posted 20 March 2012 - 08:04 AM

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? ;)
What you don't owe won't worry you.

Less can be more.

#14 200p

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Posted 20 March 2012 - 08:09 AM

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.

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#15 fluffy666

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Posted 20 March 2012 - 09:51 AM

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.




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