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delite1

Inflation Hits 2.3% !

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That's higher than the boe's forecast released last week, we're in safe hands!

CPI 2.3% (2.0 last month)

RPI 2.9% (2.9 last month)

RPIX 2.4% (2.2 last month)

Still it will fall later this year ...

Edited by erd

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Any idea of the effect this inflation figure has had on interest rate futures?

If they'd known this they wouldn't have cut rates.

It's all bull anyway, everyone knows inflation is over 5%.

http://quote.bloomberg.com/apps/news?pid=1...b6K4&refer=home

bloomberg tv guests are putting positive spin on it, "it doesn't matter too much" stuff.

Edited by pop

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How about the unthinkable ?

A rise in property prices linked to inflation

Ha! Ha! Ha! I've just seen a singing pig fly!

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Why are all the news channels shrugging it off. Its far higher than they were expecting. Most were reporting an expected figure of 2.1

Surely the boe will of had an idea of this before cutting the rate. But why.

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Guest Riser

Wow 2.3% thats about 0.2% higher than expected

LONDON (Reuters) - The inflation rate rose above its target in July to the highest level since comparable records began in 1997 as the price of petrol surged, official figures showed on Tuesday.

The Office for National Statistics said the consumer price index rose 0.1 percent on the month, taking the annual rate up to 2.3 percent from 2.0 percent in June.

This marked the first time it has risen above the Bank of England's 2.0 percent target since the CPI was adopted as the country's main inflation measure in December 2003.

The central bank last week predicted that inflation was likely to rise above its target on the back of sky-high oil prices but the latest number is still above expectations and likely to douse expectations of further interest rate cuts ahead.

The BoE cut interest rates this month by a quarter-point to 4.5 percent in response to news that the economic growth is slowing down.

The ONS said petrol prices added 0.13 percentage points to the annual CPI rate as crude oil costs have risen. There were also upward contributions from air and sea travel.

Another large upward effect came from furniture where prices

were little changed this year as price recoveries in some major retail chains offset summer sales in others.

The main downward effect came from food prices.

UK short sterling rate futures plunge on CPI rise

UK short sterling rate futures plunge on CPI rise

Tue Aug 16, 2005 9:40 AM BST

Printer Friendly  |  Email Article  |  RSS     

LONDON, Aug 16 (Reuters) - UK short sterling interest rate

futures fell as much as six ticks across the strip on Tuesday

after a much stronger than expected rise in inflation in July to

its highest since comparable records began in 1997.

Contracts were unchanged before the figures were released.

Gilt futures also fell one fifth of a point from around

unchanged before the data were released.

Consumer price inflation surged to 2.3 percent in July, far

outpacing expectations for a rise to 2.1 percent. The pickup

came mainly from a surge in oil prices. [iD:nONS001358]

UK Short Sterling

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With oil at $66pb and the £ falling, there's never been much doubt in my mind that sooner or later we'd see inflation rising. Still comes as bit of a shock, though, that it's actually beginning to show up in the doctored figures.

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This is pretty worrying - although I can't believe anyone is surprised inflation is going up. Am I right in saying (looking at the chart on the ONS web site), that CPI was about 1.2% last September and is now 2.3%. Meaning that inflation has gone up 92% in 10 months!! Astonishing.

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Although not totally related I would urge readers to study the various comments on "jobless" figures and"claimant count" figures on the BBC website under business(sorry I don't have the link)

There are lies,damn lies,statistics and Gordon Brown!!!

Heaven help the UK economy,as I have said previously it is like an elevator with a lunatic at the controls.

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It would be quite hard to argue against the real chance that we face higher rates and therefore more people struggling to keep their heads above water with higher mortgage repayments.

I want to buy, but the fear of negative equity again (first bought in 1991) is certainly holding me back as this time I will be a last time borrower not first time.

Edited by homedaq

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Guest Riser

Inflation has increased over 100% since the BOe first started increasing interest rates to 4% in February 2004, the medicine is not working :ph34r:

If Brown is going to get into number 10 he is going to need to move soon before the economic sh!t hits the fan. I predict that Blair will return from his holiday and announce he is stepping down from the PM job for health reasons leaving letting Brown move in before Christmas.

Edited by Riser

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Inflation has increased over 100% since the BOe first started increasing interest rates to 4% in February 2004, the medicine is not working :ph34r:

Right. CPI was 1.1% earlier this year, so that's actually a 109% increase, despite rates rising.

This particular bout of inflation is caused by supply-side issues, not excessive demand or monetary policy, and that is why rates will only be mildly effective in helping cool inflation.

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Right. CPI was 1.1% earlier this year, so that's actually a 109% increase, despite rates rising.

This particular bout of inflation is caused by supply-side issues, not excessive demand or monetary policy, and that is why rates will only be mildly effective in helping cool inflation.

Not exactly true, the BOE is printing money like there is no tomorrow, same with other central banks. 10% money supply growth = I N F L A T I O N.

They are massively behind the inflation curve as far as interest rates are concerned.

Meanwhile they still have not got control of D E B T which again is still growing at 10%. They are patting themselves on the back that debt growth is not as quite as high as peak years of the biggest debt bubble the world has ever seen, who are they trying to kid?

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Guest Riser
Not exactly  true, the BOE is printing money like there is no tomorrow, same with other central banks. 10% money supply growth = I N F L A T I O N.

They are massively behind the inflation curve as far as interest rates are concerned.

Meanwhile they still have not got control of D E B T which again is still growing at 10%. They are patting themselves on the back that debt growth is not as quite as high as peak years of the biggest debt bubble the world has ever seen, who are they trying to kid?

OnlyMe, do you have a link to the latest money supply figures, It provides an interesting background to the published data.

THE GREAT INFLATION

Money, Debt and Banks

BBC Inflation Report

Inflation jumps to record in July 

Rising crude prices have pushed pump prices ever higher

UK consumer price inflation (CPI) rose to 2.3% in July from 2% a month earlier, figures from the Office for National Statistics (ONS) show.

Surging crude prices drove fuel higher, while the cost of air and sea travel also rose, taking CPI to its highest level since records began in 1997.

Headline retail price inflation (RPI), which includes housing costs, held at 2.9% for a second month.

However, the underlying rate of RPI increased to 2.4% from 2.2% in June.

More soon.

I can imagine them desperately trying to thing up ways of spinning this news :lol:

People are going to put 2 and 2 together and realise that any further rate cuts are now out of the window, roll on that crash.

Riser

Edited by Riser

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Debt growing at 10% (from an all time high point), economy growing at 2%.

Why can't someone in the press spot the obvious?

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When this item was mentioned on Talksport news the reader said  something in the line of this will put the gooner on any future  interest rate cut

I had a feeling that would be the case, but is the news bad enough to warrant a raise?

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Riser, Still looking for the source for UK M3 growth rate, but you can see from Europe that the European Central Bank are a little more honest about the imbalance and effect of M3 growth.

Europe M3 Growth : 7.5 %

http://uk.biz.yahoo.com/050728/323/fodgu.html

European govt bonds fall as money supply growth rate weighs on rate cut hopes

LONDON (AFX) - European government bonds were lower after news that money supply growth in the area stayed strong in June, weighing further on the possibility of a European Central Bank rate reduction.

Data released this morning showed that M3 growth jumped to 7.5 pct year-on-year in June from 7.3 pct in May whereas markets were looking for a decline to 7.2 pct.

http://www.bloomberg.com/apps/news?pid=100...ihLqsQ&refer=uk

M3, the ECB's measure of money supply, rose 7.5 percent in June from a year earlier after growing 7.3 percent in May. The bank says a rate above 4.5 percent risks stoking inflation. M3 growth rates have exceeded 4.5 percent every month since May 2001.

``It is clear that this building up of liquidity can't go on forever,'' ECB council member Nout Wellink said in an interview with the International Herald Tribune published on July 15. ``At the end of the day, what you will get is inflation.''

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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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