Tuesday, May 20, 2008
More of the same but...
BBC News: Food price rises 'to hit UK hard'
As mentioned, this is more of the same inflation news. what makes this interesting is the final couple of paragraphs. Ernst & Young are seriously suggesting removing Food and Fuel from the inflation measures. I mean - what's the point of monitoring the cost of living and removing the essentials of living. I can't eat HD TVs.
"Inflation's getting out of control... we need a way to control the rise in food and fuel prices. Any ideas?"
"Stop measuring the food and fuel prices?"
Also - the fairyland tale rate of 1.7% inflation from food and fuel? Please.
Posted by cautiously pessimistic @ 08:47 AM (407 views) Add Comment
5 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Algorithmbetting said...
Agreed. the argument of taking out prices of items over which the uk has no control would suggest you should also remove electronic goods, cars, clothes and indeed any item which we mostly import.
Are E&Ysuggesting we only following housing and and dairy products?
2. bystander said...
They are simply trying to protect the interests of their clients, who believe that drastic rate cuts are the only way to save their failing business models. I am just constantly appalled that VI's like Ernst and Young and Azzetz are given open public forum, and wrap their personal interests up in concern for the general public.
3. Mr Plumbase said...
We have a trade deficit in food now as well as everything else.
Gawd help us, but at least inflation is under control!
4. icarus said...
Core inflation excludes items like food and energy on the grounds that their price movements are volatile and are therefore not good indicators and predictors of underlying inflation. The Fed has shown, however, that a moving average of CPI, including food and energy, is as good a measure/predictor of underlying inflation as is core inflation. Irrespective of all this, surely the government should have a separate household inflation index, where food and energy had big weightings. People living on fixed incomes indexed to inflation would receive incomes that reflected the increase in household cost of living, rather than CPI, which reflects business expenses (transport, restaurants, hotels, entertainment) as much as it refects household expenditure.
5. inbreda said...
Taking a loaf of bread out of the inflation measure will not change the price of that loaf of bread, nor the requirement fro bread in order to survive. It is a very transparent attempt. They must be fidgeting nervously - they can't seriously expect people to believe this is in the public good.