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U.k. Inflation Rate

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http://www.bloomberg.com/apps/news?pid=100...1Y&refer=europe

U.K. Inflation Rate Probably Rose to 7-Year High, Survey Shows

Aug. 16 (Bloomberg) --

U.K. inflation probably accelerated to the fastest in more than seven years in July as oil prices surged, limiting the Bank of England's scope to lower interest rates for a second time this year, a survey of economists showed.

The annual rate of consumer price increases may have risen to 2.1 percent from 2 percent in the previous month, breaching the central bank's target for the first time since May 1998, according to the median prediction of 36 analysts surveyed by Bloomberg. The Office for National Statistics will announce the figure at 9:30 a.m. today in London.

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http://www.bloomberg.com/apps/news?pid=100...1Y&refer=europe

U.K. Inflation Rate Probably Rose to 7-Year High, Survey Shows

Aug. 16 (Bloomberg) --

Seems even that figure was too low of an estimation.

The BBC site blames much of this on oil prices, could we conclude that the August figure will be up even more.

Last month I was paying 88.9p at the pump it's now 91.9p and I think there are more to come given it takes a few months for those prices to feed their way through to the pumps.

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Have we got stagflation yet? Rising inflation, falling GDP growth, rising unemployment? Just a thought...

It is looking that way. The bank reckon CPI will ease back though later.

I expect we'll have to wait a couple of quarters yet. I don't think the economy as a whole has fallen into recession yet.

Manufacturing alone may have. Will have to check.

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I think central governments and economists are still pricing in a fall in oil prices to around £30 a barrel. This is how they expectr inflation to come under control.

(in the case of the BOE they are praying though)

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BOE have clearly failed us. A little above target i could accept but 2.3% coupled with an interest rate reduction shows that their remit is not to control inflation but rather prop the housing market and consumer spending.

How many months above target is acceptable?

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  • 301 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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