Thursday, Mar 27, 2008
But don't worry, we've fixed things so it won't affect inflation
BBC "News": Oil above $107 on pipeline attack
A few years ago, to think that oil at $100+ a barrel would not affect inflation would have been labeled idiotic. Nowadays, UK inflation statistics seem impervious to rising commodity prices.
Posted by paul @ 12:10 PM (383 views) Add Comment
5 Comments
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1. denzil said...
Paul said:
>>Nowadays, UK inflation statistics seem impervious to rising commodity prices.
I think UK inflation statistics are impervious to UK inflation in general.
I was listening to Question Time on R4 over the weekend and one of the panelists poured scorn on the ONS figure of 2.% and suggested it was nearer 6% and because pay deals were based on the ONS figure people were actually getting poorer as a result.
2. Rental John said...
As far as the UK is concerned, the rise in oild price is offset slightly by the weakening dollar. Manufacturers and producers are managing to absorb costs for now in the hope that prices for raw materials and commodities will stablise or fall......but the breaking point is close.
But the pump price is still rsisng fast than the numbers on the petrol station forecourt sign can be updated. Prices in the shops are rising faster than ever, so why is the 'inflation rate' so low? Answer - government fiddle factor keeps it that way!
3. ontheotherhand said...
Why has gold dropped today when fear generated from an attack like this should trigger buying?
4. mark said...
oil price is affecting our business, we buy products which are made from oil based products, this has pushed our buyin price up quite a bit, we have put prices up on shops... so no there is no inflation we are all in dreamworld...
5. inbreda said...
I think what you fail to realise is that the effect of high oil prices has been largely offset by a reduction in the cost of champagne