[interestrateripoff]

http://www.telegraph...just-3.3pc.html

Quote

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

Quote

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).

This post has been edited by interestrateripoff: 20 March 2012 - 11:30 AM

[rantnrave]

Cost of petrol could see this reverse pretty quickly.

[zugzwang]

rantnrave, on 19 March 2012 - 08:58 PM, said:

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...

[Game_Over]

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

[OnlyMe]

No delusion here in regards the ture level of inflation but some of the materials prices seen recently are ******ing frightening.

[LJAR]

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.

[Little Professor]

Are we doing predictions?

CPI 3.5%
RPI 3.6%

[zebbedee]

zugzwang, on 19 March 2012 - 09:49 PM, said:

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...

[out2lunch]

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

[LuckyOne]

zugzwang, on 19 March 2012 - 09:49 PM, said:

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.

[pyracantha]

LuckyOne, on 20 March 2012 - 07:29 AM, said:

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...

[winkie]

zugzwang, on 19 March 2012 - 09:49 PM, said:

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.

[winkie]

MrTReturns, on 20 March 2012 - 07:00 AM, said:

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?

[out2lunch]

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.

[fluffy666]

MrTReturns, on 20 March 2012 - 07:00 AM, said:

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.