[InlikeFlynn]

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.

[rantnrave]

InlikeFlynn, on 25 February 2013 - 02:11 PM, said:

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.

[cashinmattress]

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

[inflating]

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

[rollover]

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.

[Secure Tenant]

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. Sometimes Lidl ration customers.

This post has been edited by Secure Tenant: 25 February 2013 - 02:28 PM

[blackgoose]

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.

This post has been edited by blackgoose: 25 February 2013 - 02:31 PM

[Errol]

rollover, on 25 February 2013 - 02:21 PM, said:

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?

[pyracantha]

cashinmattress, on 25 February 2013 - 02:19 PM, said:

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.

[interestrateripoff]

inflating, on 25 February 2013 - 02:21 PM, said:

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.

[Take Me Back To London!]

rollover, on 25 February 2013 - 02:21 PM, said:

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.bloomberg...frontation.html

Quote

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.

This post has been edited by Take Me Back To London!: 25 February 2013 - 03:28 PM

[long time lurking]

cashinmattress, on 25 February 2013 - 02:19 PM, said:

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

[TheCountOfNowhere]

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!

[easy2012]

inflating, on 25 February 2013 - 02:21 PM, said:

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.

[long time lurking]

pyracantha, on 25 February 2013 - 02:38 PM, said:

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