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Did Gordon Cut Vat To Blag The Inflation Figs?

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How much of the 'basket' contains VATable good?

I would have thought the bigger headline would be that although the VAT change should have resulted in 'deflation' of 2.5%, the only observed change was a decrease in the rate of _inflation_ from 4.1% to 3.1%.

Either it's just turning around the corner, or we're in for bigtime inflation and the market has just pished all over GB's VAT cut.

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In contrast to consumer price inflation, the retail prices index fell to a seven-year low of 0.9pc last month from 3pc in November, reflecting (edit) reduced housing costs.

It's a bit like spending an hour crawling 500 yards up to a 30mph sign on the motorway whilst thinking "if only".

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This thought did cross my mind too. I believe that deflation is being portrayed in the media as the ultimate evil and begetter of depressions (what a load of tosh <_< ) They're trying to spin it this way to excuse the inflation they're going to throw at us. My only concern is for blackouts - as our electricity grids are unable to cope with their money presses frantically churning out million pound notes.

Edited by RajD

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This thought did cross my mind too. I believe that deflation is being portrayed in the media as the ultimate evil and begetter of depressions (what a load of tosh <_< ) They're trying to spin it this way to excuse the inflation they're going to throw at us. My only concern is for blackouts - as our electricity grids are unable to cope with their money presses frantically churning out million pound notes.

bump !!! ;) it's already started not at full speed yet they might get the grids sorted out before they crash :lol::lol::lol:

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Even the BBC admitted in their coverage of the rate cut story that the fall is almost entirely down to the VAT cut, reductions in the cost of petrol and heavily discounted consumer goods in the run-up to Christmas. As the fall in the value of the pound is already starting to put upward pressure on the price of imported fuel and goods and the VAT cut is only temporary, I think it's a fair bet that the inflation fall is only temporary, too. The question is whether it'll hold until the election...

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http://www.telegraph.co.uk/finance/economi...iscounting.html

Would explain WHY do something soft like that................he be 100% sure that he get a drop in inflation...........thus 100% to get a rate cut from the BOE?

Mike

Other questions of our time include

'Does the pope wear a funny hat and pray alot?' and 'do bears sh1t in the woods?'

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How much of the 'basket' contains VATable good?

I would have thought the bigger headline would be that although the VAT change should have resulted in 'deflation' of 2.5%, the only observed change was a decrease in the rate of _inflation_ from 4.1% to 3.1%.

Either it's just turning around the corner, or we're in for bigtime inflation and the market has just pished all over GB's VAT cut.

By the time hes finished manipulating "the basket" it will only contain 2nd hand tellys and sofas.

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By the time hes finished manipulating "the basket" it will only contain 2nd hand tellys and sofas.

what they did in the USA was start with expensive steak in the basket and then when that got increasingly expensive , switch it for a beef substitute (ground beef mince)

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I'm 99% sure that inflation figures exclude all forms of tax

CPI is calculated using the price that consumers pay. Which means that a VAT cut represents downward pressure on the index.

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When does VAT go back up? Booze was held at 17.5 so you can bet your bottom quid that will goto 20%!

No it wasn't. Booze and petrol had their VAT reduced, but their duty increased to compensate. Of course, once the VAT goes back up the duty won't be reduced again. :angry:

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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