Wednesday, Jul 25, 2007
Could the floods trigger an earlier rate rise?
Telegraph: Price of milk and food set to soar
Whilst achnowledging the human suffering and not wishing to be insensitive, there are economic implications to the flood. Food prices already under pressure to soar from supply problems with damaged product and supply chain. Service industry prices, e.g. plumbing, along with construction also set to surge from flood demand. If the inflation issue was on a kife's edge, could this push us over the edge? Could this, combined with stretched households tip the housing market over the edge? If HIPS could be blamed for destabalising the housing market, then why not the biggest flood in modern history?
Posted by planning4acrash @ 08:45 AM (166 views) Add Comment
11 Comments
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1. tyrellcorporation said...
...I'm off to Lidl to get a pallet of UHT!
2. denzil said...
I fully expect to see peas removed from the basket of goods and factored back with the same weighting as fuel costs during the next pea crop when prices fall again.
I can see the BBC Headline now:
Shock rise in inflation mainly the fault of peas.
3. tyrellcorporation said...
Is there anywhere where we can find out how they 'weight' items?
4. denzil said...
tyrellcorp:
I remember seeing this on the forum
These are the items included in the inflation basket and their percentage weight:
1 Food & non-alcoholic beverages 10.3%
2 Alcohol & tobacco 4.3%
3 Clothing & footwear 6.2%
4 Housing & household services 11.5%
5 Furniture & household goods 6.8%
6 Health 2.4%
7 Transport 15.2%
8 Communication 2.4%
9 Recreation & culture 15.3%
10 Education3 1.8%
11 Restaurants & hotels 13.8%
12 Miscellaneous goods & services 10.0%
I cannot find the defintive figures because
http://www.statistics.gov.uk/downloads/theme_economy/CP_Brief_Guide_2004.pdf
5. denzil said...
Crikey I did not finish writing that:
I could not find the definitive figures from an authoratitive source but these explain it in more detail:
http://www.statistics.gov.uk/downloads/theme_economy/CP_Brief_Guide_2004.pdf
http://www.statistics.gov.uk/downloads/theme_economy/CPI_Technical_Manual.pdf
6. david20040_0 said...
But oil and gasoline are dropping sharply.
7. Jolo said...
So are BTLeters profits
8. iguana said...
Peas be with you
I have lived in the Gloucestershire area for 25 years and I know it pretty well, I have never seen a pea crop here (other than the fodder type) so the current flooding did not do much harm to peas that I can see. Surely peas come from prairie farms in East Anglia? Do I detect that food price uplift mania blaming global warming or wetting for hikes that would otherwise not be tollerated?
9. indiablue19 said...
Naturally my favourite people, TESCOs will take whatever they can get; whenever they can get it, and for any reason they can contrive. Living now in France for a few months. Come on over folks, life here is miraculous. We've probably said one hundred times by now: "Why didn't we do this YEARS ago?"
10. Mark said...
the floods could actually have a reverse effect .. causing a min boom as insurance companies pay out for new items, cars, houses, builders, shops, etc will all get money out of it, builders will be employed, they will have spare money, they will buy houses on hills and the boom could continue because of it, naturally inflation will spiral out of control, but will this bunhc of tw**s in labour care? nope..after all we came close to a nuclear disaster this week...................
11. nopensionnohouse said...
Tell you what denzil if I worked out my pie chart equivalent of page 21 of CP_Brief_Guide_2004.pdf it would look WELL different!
There are some BIG old omissions right there!