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Is Inflation Kicking Off?


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#1 InlikeFlynn

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Posted 25 February 2013 - 02:11 PM

Just had a shock at my local supermarket - sunflower oil is now £1.59 a litre. Food prices for my weekly shop seem to have kicked on up again this month after a period of relative stability. The price of diesel has risen 4p per liter to 141.7p a litre this month alone. Undoubtedly these are the first effects of the ongoing decline in sterling and there will be more to come. Anything that trades on the global market (bulk foodstuffs, oil etc.) will be hit hard. The rise is diesel is 2.9% in one month with more to come.

The inflation figure for february won't be due until the middle of next March, and will be flattered by the data "falling out" of the calculation (prices rose substantially between january and february last year and this effect will fall from the calculation). Inflation over the spring may well push the BoE in unexpected and uncomfortable directions.

#2 rantnrave

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Posted 25 February 2013 - 02:16 PM

Inflation over the spring may well push the BoE in unexpected and uncomfortable directions.

Twice the amount of QE they had pencilled in?

It does seem though that the slow motion trainwreck we have bene analysing on this site for eons is gathering momentum.

#3 cashinmattress

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Posted 25 February 2013 - 02:19 PM

My mate used to run his motor on vegetable oil until they made that more expensive than the pump diesel.

#4 inflating

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Posted 25 February 2013 - 02:21 PM

Can there now be a wage spiral? Arguments pro and con, please.

#5 rollover

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Posted 25 February 2013 - 02:21 PM

On the other hand analysts from Goldman Sachs calling an end to the metal’s 12-year bull run as data showed Gold slumped to a seven-month low last week as investors cut holdings. Gold is the world's oldest inflation hedge.

#6 aSecureTenant

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Posted 25 February 2013 - 02:25 PM

Personally wouldn't touch sunflower oil with a barge pole however nice surprise in Lidl today.

250g of excellent Grahams Dairies unsalted butter down to 88p from £1.20. Special offer of course.

You need to buy on the offers and ignore the rest I'm afraid.

Now Sierra Nevada Pale Ale has risen from £1.89 in Sains/Tesco to £2.09. I only buy a few bottles in, for when my mate comes round as it is all he drinks. Its imported and so has risen a lot in price.

Lidl had cheap diced steak or something over the weekend. Some woman at the till bragging she had grabbed all that was left. Could have slapped her. :lol: Sometimes Lidl ration customers.

Edited by Secure Tenant, 25 February 2013 - 02:28 PM.

"Capitalism has defeated communism. It is now well on its way to defeating democracy" ~ David Korten

“To think output and income can be raised by increasing the quantity of money, is like trying to get fat by buying a larger belt” ~ John Maynard Keynes 

 

Ignoring ALL UKIP and 'Election' threads on HPC until further notice


#7 blackgoose

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Posted 25 February 2013 - 02:30 PM

Recent increases will be due to the sharp drop in the pound in the last couple of months. The cost measured in dollars has been more stable.

Edited by blackgoose, 25 February 2013 - 02:31 PM.


#8 Errol

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Posted 25 February 2013 - 02:30 PM

On the other hand analysts from Goldman Sachs calling an end to the metal’s 12-year bull run as data showed Gold slumped to a seven-month low last week as investors cut holdings. Gold is the world's oldest inflation hedge.


Goldman long gold, then? :lol:

Want to get paid for polls? Try YouGov


#9 pyracantha

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Posted 25 February 2013 - 02:38 PM

My mate used to run his motor on vegetable oil until they made that more expensive than the pump diesel.


It's occurred to me there might be a deliberate policy of ensuring it's always more expensive than diesel to stop people doing this.

#10 interestrateripoff

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Posted 25 February 2013 - 02:41 PM

Can there now be a wage spiral? Arguments pro and con, please.


Wage inflation is bad, Mystic Merv said so. This was the only inflation he was really concerned about as the proles had to eat 5h1t and like it. Inflation everywhere else was perfectly acceptable.

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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#11 Take Me Back To London!

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Posted 25 February 2013 - 03:09 PM

On the other hand analysts from Goldman Sachs calling an end to the metal’s 12-year bull run as data showed Gold slumped to a seven-month low last week as investors cut holdings. Gold is the world's oldest inflation hedge.


Just a month ago Goldman Sachs's analyists were advising investors to go long in gold and gold went in the opposite direction.

Once again the conrtarian indictaor is flashing.

http://www.youtube.com/watch?v=1kIVe1RrIAc



http://www.bloomberg...frontation.html

Goldman Forecasts Gold Rally Amid Debt-Ceiling Confrontation

By Glenys Sim - Jan 21, 2013 3:51 PM GMT+0100

Gold may climb over the next three months as U.S. lawmakers attempt to tackle the country’s debt ceiling and the world’s largest economy slows, Goldman Sachs Group Inc. said, advising investors to place bets on advances.

“We see current prices as a good entry point to re- establish fresh longs,” analysts Damien Courvalin and Alec Phillips wrote in a Jan. 18 report. The bank reiterated a three- month target of $1,825 an ounce, as well as a forecast for prices to weaken in the second half as the U.S. economy rebounds.


Edited by Take Me Back To London!, 25 February 2013 - 03:28 PM.

Bankers may well have acted as if they’ve been sitting in the casino during the boom years. But it was a state-owned casino, with governments as the croupiers, and central bankers behind the bar giving out free booze.

John Stepek

#12 long time lurking

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Posted 25 February 2013 - 03:22 PM

My mate used to run his motor on vegetable oil until they made that more expensive than the pump diesel.


I still do, cost co £21.50 20 lt last time I bought it from them but tesco had a 2 for 1 on there 3liter bottles just after Xmas so I stocked up on that

#13 TheCountOfNowhere

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Posted 25 February 2013 - 03:25 PM

i nearly took a photo of the empty shelf of own brand washing up liquid sat next to a full shelf of fairy...that's repeated all round the store!

#14 easy2012

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Posted 25 February 2013 - 03:26 PM

Can there now be a wage spiral? Arguments pro and con, please.


You need to be more specific with your question. For the average worker who are competing with global / EU labour supplies - no.

Those who live off state/EU subsidies, indexed link pension, those who run the central bank - yes.

#15 long time lurking

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Posted 25 February 2013 - 03:28 PM

It's occurred to me there might be a deliberate policy of ensuring it's always more expensive than diesel to stop people doing this.

It did increase in price dramatically when it become legal to run a car on it




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