Tuesday, Feb 13, 2007
Inflation down
FT.com: Dip in UK inflation as transport costs ease
Lower transport costs in January helped UK inflation to fall the most in four years , data released on Tuesday showed.
The pound slumped and government bonds rose as traders calculated that the news reduced the need for the Bank of England to continue increasing the cost of borrowing.
Posted by dohousescrashinthewoods @ 11:22 AM (125 views) Add Comment
21 Comments
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1. Robwiltaylor said...
How do they manage it! Transport? in January travel by train rose at a rate greater than “Official Inflation”!!! (ignore this)
Watch now that BG will be lowering energy bills what a remarkable effect this will have on the inflation figure whereas when the gas and electric prices rose they had very little effect on the inflation figure. It amazing their method of calculating should be taught at school and nobody would ever again fear failing maths.
2. waitingfor hpc said...
i find it stange - petrol went up to £1.00 litre - and the cpi hardly moved. Now it drops 0.8p a litre and it drops back i read on yahoo news?
HOW? WHY?
When it went up it never had this effect?
3. cyril said...
I think the reason is because the fuel price went up a year ago (and down this month) - so it seems to have say twice the effect it would normally have (assuming it went up / down by the same amount).
I think the figures are a bit of a nonsense though. Apparently some of the decrease is attributed to the falling cost of mobile phones.
.
4. paul said...
Don't worry. RPI follows HPI like night follows day. The effects of a tripling of housing costs are feeding through now, and inflation is unlikely to come down in the longer term. We'll wait and see how the bank talks their way out of that one.
5. dohousescrashinthewoods said...
I have a feeling that the underlying trend is up. Even though there are downward steps, there is an underlying swell.
I can't really point to facts, but others here in manufacturing readily concur and I have a feeling that China starting to unfix its exchange rate will be trouble for us.
6. tyrellcorporation said...
I have the same feeling. I reckon China will increase the range at which the Yuan can trade in the near future. Then things will get interesting. No more brand new push bikes at 79 quid and Tesco toasters at 4.44!
Turning to the Turkey debacle, anyone else turned off turkey products for life too!?! That animal processing plant looks like hell-on-Earth! Vile...
7. Sam said...
wait till the council tax increases come in.
8. waitingfor hpc said...
i give up. It seems no sense prevails in this country. If you 'make up' inflation figures enough perhaps you believe your own spin. I am not able to see it though. I calculate my inflation at 10%. HPI today is 10%? Surely that is inflationary.....
I see the cost of living just keep going up in real terms - i do not buy a computer every year - or a tv - or furniture. And if mince meat goes up I do not buy steak!
I have had enough of this never never land economy that is not based on reality and this govt seems determined to prop up at any cost. If they keep this up surely they can carry on for years pretending costs are going down - we can all pick goods to put in the basket to prove a point. What about real life and what bills we have to pay.
USA had 17 rate rises to beat inflation over 17 months - we have done it with what 3 over 6 months? We truly are the miracle economy!
9. harold said...
tyrellcorporation, I buy organic or meat from the 'real meat company'. Ok so it's more expensive, but I eat less of it and more fruit and veg, so am (hopefully) more healthy as a result.
Oh, the RPI? - it's a fantasy, why bother commenting.
10. cyril said...
I think all these factory farming plants are pretty vile not just turkeys. But that's the price you pay for cheap food!
I get my meat from an organic butcher down the road but it costs a fortune. Presumably basket of goods for the CPI has stuff like Bernard matthews turkey twizzlers in it
11. inbreda said...
Avoid the issue - go veggie.
When was the last time you saw an obese vegetarian?
Then you don't have to worry about factory farming conditions OR the price of organic turkeys
12. bingo said...
I thought people only ate turkey once a year, seriously. I wasn't aware of the scale of the industry. Now that I have actually seen the conditions that these poor animals are kept in, I think it'll be quorn for Christmas this year...
Oh, the RPI? what Harold said...
13. japanese uncle said...
I think something is seriously wrong with the British eating habit, anyway. Otherwise how can such angelic lovely toddling girls become such XXXXX.? I suggest kidnapping all of them at age 2 or 3 to some Midterrenean place and feed them with tomatoes, orange, good cheese, olive oil, etc. and no McDonalds KFC and frozen food, gallaxy, Coke, etc. you can make a sexiest brigade of young women on earth!
14. bingo said...
err, j u, that would be kidnapping... probably something about human rights in there too,,,, oh yes, it would be denying them their human right to become disgusting...
15. inbreda said...
Yes. If you read the law, it is every persons human right to become an obese and disgusting human being.
Fortunately it is everybody elses right not go anywhere near them.
Except of course if more than 15 pints have been drunk, in which case all of the laws, including the laws of physics, deteriorate.
16. rich said...
For some reason it's hard to think about economics after someone has mentioned the idea of breeding a race of super-hot women.
17. tyrellcorporation said...
Now I understand why a kilo of Chicken Kevins from Tesco is cheaper than a pint at my local.
Ahhh the Bootiful game - importing rancid Hungarian turkeys to be injected with garlic trans-fats, coated in mock breadcrumbs and flogged to stigs... A health time-bomb IMHO.
18. Nohpc said...
LOL they are not "making up" the inflation figures. The only reason why the housepricecrashers are upset is because it means they won't get their precious interest rates rises and thus HPC. The fact that inflation is dropping is a good thing for Britain and the economy. If you want a house go and buy one FFS they are not going to drop in nominal terms and you may as well use your savings now.
A house is worth what somebody is willing to pay for it. If you don't want to pay the UK prices even though you can afford it you just have to put up with your lot.
So inflation down, interest rates stable, unemployment down, economy growing at more than 2%. Things are certainly looking a lot better now. Of course you lot will never believe any good news so I might as well tell it to the brick wall. No HPC i'm afraid.
19. dohousescrashinthewoods said...
A time-bomb which has resulted in exploding waistlines for those who can't or won't afford to buy "quality" rather than "cost-effective" food.
20. dohousescrashinthewoods said...
Organic, fair-trade, locally produced. I believe these are the future.
My wife and I eat organic. We do spend a lot on food, but we like food so we make it a priority.
I also think a social/ethical business model is emerging. Companies following the old model of pilage, plunder, cut corners and screw the customer, suplier and employee are going the way of bird-flu infected Bernard Matthews turkeys.
People vote with their purchases as to what they believe in (if they can).
21. mrmickey said...
The problem with this country is everybody is price driven if it's cheap buy it. Because of inflation suppliers are constantly under pressure to cut costs and therefore quality or they have to put their prices up, something has to give hence the bird flu infected grub.