Tuesday, Mar 20, 2007
Inflation up!
BBC: UK inflation rate rises to 2.8%
IR to follow ? Wouldn't BankofE on it
Posted by holding out @ 09:59 AM (181 views) Add Comment
20 Comments
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1. harold said...
How inconvenient for the MPC - yet more smoke and mirror tricks required.
2. mrmickey said...
Just had my electricity/gas bill come through for the Dec-March period, it's gone up 24% on last year but not to worry inflation is only 2.8% I must be dreaming I'll go back to sleep.
3. japanese uncle said...
Publishing of these contradicting inflation data must represent the conflict of interests that exists between the two parties ie financial tycoons who benefit from the collapse of the bubble (as they need it so that they should be able to reiterate the whole boost-pricking process in, say 15 years ahead, thus every economic bubble is destined to burst sooner or later) and those industrialists and smaller businesses who draw on lower IR for their day-to-day running of business.
4. Sam said...
If brown, increaces duty on flights tommorow it's gonna hit 3.1% this summer for sure. I think there's already gonna be a hike in peterol prices.
what I want to know what's the big deal with this letter? I mean, what's so scary abtou that? - Also Mervyn has on many occasaion said that house price inflation is too high (mostly late 2005/2006) but the polititions want to do very little about it. he's even stated that the figures he has to work with are indirectly affected by HPI making it hard for him to justify increasing rates pointing directly to HPI.
I can imagine it goes something like this.
Dear Gordo,
I told you so, now if you want me to sort this out which would you like me to save, Sterling or your career?
p.s. - if I save sterling, tony's BTL properties will go down in value as fast as your career.
M. King.
5. Andy said...
Inflation tends to lag behind oil price which is back above $60/barrel, I expect more increases to come as oil demand is driven by holiday season and the Iran question is still not off the table.
BoE must increase rates next month to control this.
6. rich said...
mrmickey, you're clearly a communist, a terrorist, or some other kind of agitator. Inflation is at 2.8%, which means that you must have been undercharged last year. :o)
7. inflation is eating my savings said...
pound up heavily against all currencies today- presumably the markets are pencilling in another quarter percent rise in the next month or two.
8. Speculatorone said...
mrmickey are you suggesting figures are being fudged??
9. Yoman said...
Well. It is not hard to shift the data. when energy price increase, they put more weight on TV, computer, etc...
now the energy price go down by 15% (still a 20%+ compare to last year) they put more weight on energy price.
Now they include the ipod and digital radio in the bucket too.
Did they put the PS3 in too where it gone up by 400%+ from PS2?
I belive they can make CPI into negative value if they want too, at the end it is just a make up number.
10. Tick Tock said...
2.4%! - what a joke. Fiddling the figures is one thing, but these inflation stats a just laughable. Whats the point? Restricting pay rises will not prevent the inflation (after all, they don't really want to prevent this inflation do they?), just make poor people poorer and rich people richer (which seems Labour policy around these days) Everyone knows inflation is far, far, higher than 2.4% They are destroying the credibility that they will eventualy need to calm people after the storm. What a bunch of short sighted crooks.
11. David20040_0 said...
2.8%? Surely it has to be more than that with hosuing rising at £100 a day. Oh wait I forgot they exclude hosuing.
What on earth would it be if the included housing, 9 - 10%?
Another crappy 0.25% rise from the BoE then which will make no difference but will be described as a shock rise.
12. David20040_0 said...
"Other downward effects included falling prices for computer games, which were rising in February 2006"
Computer games? Who the hell cares about computer games.
These people will look for anything that is falling to try and hide the true picture of rising inflation here.
If they included housing surely it would rocket.
13. bidin'matime said...
It cant be long before the CPI is exiled by all but Gordo, so that he has to start taking RPI seriously.
14. C'mon Correction said...
RPI at 4.6%, we're talking pay rises of 5% this year not the usual 2.5%. This could spiral...
15. paul said...
bidin you've hit the nmail on the head.
I think this re-evaluation will be met with incredulity, and a continued flight from the CPI measure back to the RPI measure. This has already started happening and will continue. The strategy is clear - reduce the national debt mountain via stealth inflation. However stealth inflation is everyone's enemy, and I doubt that the media will stand for it.
16. royston said...
This will test whether the MPC's first priority really is to keep inflation in check!
17. Sighmoon said...
Reading this together with the Forbes article on what constitutes the 'basket of goods' seems to suggest that the target is to keep inflation below 3% for the short term.
Not only has fuel increased it's weighting in the basket (while relatively high), but look at other items added to the basket, like credit card fees - set to reduce by law, and more technological goods that are being commoditised (so decreasing in price).
18. Chilli said...
Thank god computer games have dropped. If they drop a little more, maybe all our problems with be solved.
LOL
19. doomwatch said...
Wansworth Council tax has just gone up a shade over 5%, which is meant to be the cheapest in the country.
20. geed said...
"Other downward effects included falling prices for computer games, which were rising in February 2006"
Oh thank god! What an insult to the average persons intelligence....they must think we are all muppets. Geez I'm struggling to pay my bills but at least i can buy more agmes for my X-Box this month
BBC, BoE,ALL OF THEM COMPLETE IMBECILES!!!!!!!!!