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IMupNorth

Oil Induced Inflation

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Given oil went over 60$ a barrel again today and the belief is its going to stay around this level or even go higher. This makes it 42% higher than a year ago.

Can anyone on here predict how much 'inflation' this is going to inject into our economy ?

42% can't be absorbed forever, can it ?

Also, I am presuming that no end of IR rises can stop this feeding through to the ordinary persons pocket.

So, it does beg the question why raise IRs to keep inflation under control, when it won't have the effect required because of the enormity of the pressure from oil price rises. Perhaps a better policy is to let the £ fall and get everyone to reduce the use of oil - and therefore reducing carbon emissions to boot, helping the global warming.

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Given oil went over 60$ a barrel again today and the belief is its going to stay around this level or even go higher. This makes it 42% higher than a year ago.

Can anyone on here predict how much 'inflation' this is going to inject into our economy ?

42% can't be absorbed forever, can it ?

Also, I am presuming that no end of IR rises can stop this feeding through to the ordinary persons pocket.

So, it does beg the question why raise IRs to keep inflation under control, when it won't have the effect required because of the enormity of the pressure from oil price rises. Perhaps a better policy is to let the £ fall and get everyone to reduce the use of oil - and therefore reducing carbon emissions to boot, helping the global warming.

I wonder if the pound will stay strong because its seen as a petrocurrency and therefore may keep interest rates low. Its risen a percent or two in the last few days as oil prices have risen.

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  • 335 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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