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Inflation Up To 3.7%, Rpi 5.3%


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Don't forget:

- the oil spill

- the troubles in Bangkok

- the upcoming World Cup

- the Lewis Hamilton crash some weeks ago

- weather too cold

- weather soon to be too hot

- not enough snow in the summer

- and many other things that are clearly pushing inflation up.

When house prices start properly crashing later this year, I'm sure the BBC will link it with all of the above.

:lol:

That's a very cynical point of view Pole, you sure you're not really British? ;)

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So, house prices have already halved and continue to fall in almost any major measure you care to mention except the one I am paid and save in. Ten years of hard work and restraint trying to get my first foot on the ladder and now my money's being stolen from me to prop up the very people who have been enjoying homes beyond their means all this while. Thanks a lot you lying thieving scum.

spot on

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Previouse HPC into CPI post

From what I've been hearing from this new Con/Lib government, redirecting investment from housing into productive industry is a priority and it does make perfect sense. Comments made by GO about introducing housing into CPI makes me even more convinced that they will use decreasing house prices to control inflation. To do that they have to let housing fall, the new CGT rates are just the start. Before The LD's agreed a coalition with the Conservatives, Clegg was recorded as saying the housing bubble was unacceptable. I think Vince Cable had the same views. I think this Government is going to extract equity from the housing market and redirect it into productive industries. When you think about it, what else has that quantity on money invested that could be used elsewhere.

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ITV News with a "basket of goods" saying it's the price of oil causing the "enormous" increase in inflation.

Of course there's that fundamental rule that oil only affects the price of things when the oil price goes up but never when it goes down.

...you have to blend it with the £/$ exchange rate ....that's why it really hits .... :rolleyes:

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Based on those letters, I'm buying more RPI-linked bonds at the first opportunity.

I read somewhere here a while back that the BoE pension fund piled all their money into index-linked bonds around 2008. Anyone know where that info is available?

I bought 3 year issue 20 2 weeks ago.

Do you happen to know how often they bang these out?

I might just go ahead and whack some more in the 5 year too, while i wait.

Its rape thats what it is. :angry:

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Previouse HPC into CPI post

From what I've been hearing from this new Con/Lib government, redirecting investment from housing into productive industry is a priority and it does make perfect sense. Comments made by GO about introducing housing into CPI makes me even more convinced that they will use decreasing house prices to control inflation. To do that they have to let housing fall, the new CGT rates are just the start. Before The LD's agreed a coalition with the Conservatives, Clegg was recorded as saying the housing bubble was unacceptable. I think Vince Cable had the same views. I think this Government is going to extract equity from the housing market and redirect it into productive industries. When you think about it, what else has that quantity on money invested that could be used elsewhere.

Labour were already doing this.

They got the cash-rich to put all their money in overpriced and under-supplied property by dropping interest rates.

It will be seen in retrospect as a huge transfer of wealth from the rich to the banks.

Next step is to pull the rug out with a CGT rise, and allow IRs to be raised. If you've not sorted your borrowings out tough sh1t - you had your chance.

The time limit is how long the bond market keeps patience with inflation.

Hence the casual air to the letters - "inflation's going up, but it'll be fine". It's all fine until the government can't borrow money any more.

If they sounded panicked the market would respond in kind.

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Previouse HPC into CPI post

From what I've been hearing from this new Con/Lib government, redirecting investment from housing into productive industry is a priority and it does make perfect sense. Comments made by GO about introducing housing into CPI makes me even more convinced that they will use decreasing house prices to control inflation. To do that they have to let housing fall, the new CGT rates are just the start. Before The LD's agreed a coalition with the Conservatives, Clegg was recorded as saying the housing bubble was unacceptable. I think Vince Cable had the same views. I think this Government is going to extract equity from the housing market and redirect it into productive industries. When you think about it, what else has that quantity on money invested that could be used elsewhere.

So HPCers get ******ed on the way up (out of the index) and ******ed on the way down (back in the index) where prices of everything else are flying. (ok, possibly mitigated by the actual fall in property).

At least George hasn't got an election to win any time soon and Vince is a commie goblin going after all that unearned.

Interesting times these.

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I take it I would be crazy to open a NS&I now ? I have some cash looking for a home....

Why? Coz the only way is down?

Dont fink so.

Unless they get uber creative mit der basket.

EDIT: Unless the gubmint are really going to engineer the mother of all crashes.

Edited by shindigger
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Based on those letters, I'm buying more RPI-linked bonds at the first opportunity.

I read somewhere here a while back that the BoE pension fund piled all their money into index-linked bonds around 2008. Anyone know where that info is available?

From the BoE themselves. <_< complete with a lovely chart showing how in Feb 2008 the fund was 70.8% index linked securities, by Feb 2009 that increased to 88.2%, any guesses as to the figure to Feb 2010? Insider trading anyone? :ph34r:

http://www.bankofengland.co.uk/about/humanresources/pensionupdate.pdf

and

http://www.bankofengland.co.uk/about/humanresources/pensionreport.pdf

BoE salary scales and other stuff can be found on.

http://www.bankofengland.co.uk/publications/foi/information_class8.htm

Because they're worth it. :lol:

*Edit*

The 2009 update is dated 1st July, so we might not have that long to wait before the 2010 update is released.

Edited by Concrete Jungle
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They might be paid in £ but who says they aren't buying gold/silver/platium or shares with it?

It is in their interests for a massive collapse to occur, massive collaspes have made people incredibly wealthy.

Lee Kar Shing for example bought in 1968 when confidence in HOng Kong was all time low after massive unrest and riots where executions on the streets occured (of police and protestors) he bought up enormous swathes of property.

Roman Abramovich got wealthy in the USSR collaspe.

They will be positioning themselves in such a manner so when not if the collaspe comes they will have a monopoly on necessities and will become exceptionally wealthy when the collaspe and subsequent recovery occurs.

These are 2 good examples of those outside power taking advantage when those inside power ****** things up.

Completely different to what I am talking about. I do not believe for a second the likes of Cameron/Osbourne/King have a complete collapse in their best interests. Complete nonsense IMO.

Now for others waiting in the wings - as you have shown ? Most definitely agree - however they will have to wait and see what occurs.

You honestly think those in charge want it to be known by millions of people (Including the military) that they allowed the currency to become worthless ?! No danger. They would be shitting bricks if it ever happened. They want to keep people in control, and a collapsing currency/state/financial system with everyone thinking 'What is the point' is the very worst outcome in this regards.

IMO.

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...you have to blend it with the £/$ exchange rate

Exactly.

http://inflationdata.com/inflation/images/charts/Oil/Inflation_Adj_Oil_Prices_Chart.htm

http://tools.currenciesdirect.net/currency-chart/

When the oil price dropped 75% and the £/$ only dropped 30% they weren't standing outside the BoE in Threadneedle Street with their basket of goods saying that the oil price had caused price reductions. Food prices continued to be reported as still going up and household energy prices still haven't moved down much if any at all from their peak when the oil price peaked.

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The CPI is particularly special this time around.

Removed - Hairdryer, added hair straightening tongs - presumably the straightening is all done wet.

Baby food is removed.

Allery tablets in, eye tests out.

Fizzy canned drinks are out - so nobody buying Coke in cans any more?

Lies, heaped upon lies, upon more lies. From basket to remit to policy.

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Exactly.

http://inflationdata.com/inflation/images/charts/Oil/Inflation_Adj_Oil_Prices_Chart.htm

http://tools.currenciesdirect.net/currency-chart/

When the oil price dropped 75% and the £/$ only dropped 30% they weren't standing outside the BoE in Threadneedle Street with their basket of goods saying that the oil price had caused price reductions. Food prices continued to be reported as still going up and household energy prices still haven't moved down much if any at all from their peak when the oil price peaked.

And the last weasel words publicly on offer from one of the energy companies was around the turn of this year (from memory after a meeting with Ofgem) when an energy supplier spokesperson said that they couldn't reduce household energy prices because when the oil peaked in June 2008 they had to buy supplies 2 years in advance at that price. Yes, 2 years in advance at the peak price!

Well the 2 years is up next June so for goodness sake household energy prices should come down then (seeing as how for the past 2 years they've had to use supplies bought in 2008 at the peak price and all :rolleyes: ) .

Edited by billybong
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The CPI is particularly special this time around.

Removed - Hairdryer, added hair straightening tongs - presumably the straightening is all done wet.

Baby food is removed.

Allery tablets in, eye tests out.

Fizzy canned drinks are out - so nobody buying Coke in cans any more?

Lies, heaped upon lies, upon more lies. From basket to remit to policy.

Truth is that they should take everything out of the basket and put it in a case.

p-o-p

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Don't be a slave to inflation and debt...Paper money is a scam and the banksters and politicians are the ones doing the scamming!

They just don't tell you that part...

Ron Paul Why Gold & Silver!

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Don't be a slave to inflation and debt...Paper money is a scam and the banksters and politicians are the ones doing the scamming!

They just don't tell you that part...

Ron Paul Why Gold & Silver!

The only scam bigger and more insidious than paper money is precious metals.

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I bought 3 year issue 20 2 weeks ago.

Do you happen to know how often they bang these out?

I might just go ahead and whack some more in the 5 year too, while i wait.

Its rape thats what it is. :angry:

Ran some analysis on this a while ago as I was wondering the same thing. You can see the previous issues here http://retirementinvestingtoday.blogspot.com/2010/05/ns-index-linked-savings-certificates.html

Average 3 year issue is every 130 days and 5 year is 154 days. Worst gap between issues was 493 days.

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Ran some analysis on this a while ago as I was wondering the same thing. You can see the previous issues here http://retirementinvestingtoday.blogspot.com/2010/05/ns-index-linked-savings-certificates.html

Average 3 year issue is every 130 days and 5 year is 154 days. Worst gap between issues was 493 days.

Those 2008 issues were quite rapid!

Thanks for the info, good stuff.

The only question is how creative they get with the basket.

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The CPI is particularly special this time around.

Removed - Hairdryer, added hair straightening tongs - presumably the straightening is all done wet.

Baby food is removed.

Allery tablets in, eye tests out.

Fizzy canned drinks are out - so nobody buying Coke in cans any more?

Lies, heaped upon lies, upon more lies. From basket to remit to policy.

It would be good if they also put in the figures for the previous 4-5 revisions of the basket.

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It would be good if they also put in the figures for the previous 4-5 revisions of the basket.

you use to eat 100% cod fish fingers with breadcrumb coating.

today, you eat breadcrumbs and some fish in small fingers.

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