Tuesday, Feb 12, 2008

food and fuel prices rise at their fastest rate for 17 years

The Telegraph: Families hit with £1,300 rise in cost of living

Families are having to pay an extra £1,300 a year in household bills as food and fuel prices rise at their fastest rate for 17 years.

Posted by sold 2 rent 1 @ 11:56 AM (548 views) Add Comment

8 Comments

1. sold 2 rent 1 said...



If the cost of living increases much faster then the HP falls then we could reach 9 times like in 1948

Tuesday, February 12, 2008 12:11PM Report Comment
 

2. Bye_to_let said...

as long as the house prices keep rising we can still remortgage to pay for it, so a cut in interest rates yeah..? [just kidding but they'll probably do it anyway]

Tuesday, February 12, 2008 12:22PM Report Comment
 

3. denzil said...

The figure of £1300 quoted does not surprise me in the least but what does surprise is the decision by the MPC to cut rates. Did they not see this coming. Either they target inflation or they don't.
What is interesting from the article is:

"They showed that the prices paid by firms for wholesale goods such as food and oil increased by 5.7 per cent in January..."

Holy Moly! 5.7% in a single month. More rate cuts this year, not a hope.

Tuesday, February 12, 2008 12:31PM Report Comment
 

4. hpwatcher said...

''what does surprise is the decision by the MPC to cut rates''

.......the public image of gordon brown needs it

Tuesday, February 12, 2008 12:38PM Report Comment
 

5. denzil said...

And there's more:

>>MySupermarket.co.uk, which compares prices across different websites, said a basket of 24 key items had increased by 11.3 per cent compared with a year ago.

But CPI is still around 2.0% give or take a bit.

The classic line in this whole article is that the ONS said the spike in inflation in January was due to the increase in the cost of dried fruit. Brilliant, you couldn't make it up. God help us when the 20p a litre increase in the cost of fuel kicks in and the 15%+ increase in domestic heating bills. What will the ONS blame runaway inflation on then, the humble sprout perchance?
Most dash as I appear to have wet myself through laughing so much.

Tuesday, February 12, 2008 12:44PM Report Comment
 

6. techieman said...

s2r1 - as you know I subscribe to elliott.com. On that they have a free link to Futures Junction. On that they have an analysis of the wave count for various commodities. For example Wheat has had a limit up move, in what the analyst calls the middle of the third. What surprises me (and i take the point that others may think this wave stuff is not applicable) is how many commodities are in the "3rd" according to this analyst - i.e. 3rd UP. Look at the weekly wrapup. Because you are interested you may want to join the club. [makes sense when you look at the link]. http://www.elliottwave.com/ then click on the Video Wheat futures (free updates on the right) then sign up to the club then when you get on futures junction and after the video take a look at the weekly charts.

Tuesday, February 12, 2008 12:48PM Report Comment
 

7. techieman said...

but hpwatcher Crash gave the powers to hit the target rate of inflation, to the BoE via their monetary policy. That was one of the first things Labour did when they got in office, so as not to politicise the decisions taken. You are not suggesting that the government has anything to do with the BoE rate setting? Surely not - If i was on this site for the first time that would give me some problems with credibility here ;-). Good job I've been here before then!

Tuesday, February 12, 2008 12:53PM Report Comment
 

8. sold 2 rent 1 said...

techieman,

Intersting. This may well be wave 3 with wave 5 to blow off in March.

I am more interested in the long term though. I see there is at least a 50 year cycle in wave (V) finishing (between 2008-2010).
This makes sense with concepts such as peak oil, peak food and US M3 exploding at 18pc.

Even more interesting is the wave (III) in a blue circle. With the wave (IV) in a blue circle be the depression? And will wave (V) in a blue circle be the hyperinflationary blow off when Ben's helicopter start carpet bombing dollars.

Tuesday, February 12, 2008 05:18PM Report Comment
 

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