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Cpi Drops In June


Kyoto
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UK rates concern as inflation misses target

http://www.telegraph.co.uk/finance/economics/interestrates/7888805/UK-rates-concern-as-inflation-misses-target.html

The Consumer Price Index rate of inflation dropped from 3.4pc in May to 3.2pc last month, according to the Office for National Statistics, but fell short of economists' targets of a decline to 3.1pc.

Increasing concern was the increase in "core" inflation, which excludes volatile factors such as food and petrol, from 2.9pc to 3.1pc.

So an increase in core inflation measure, e.g. the shit we actually have to buy!

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Edited by Kyoto
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UK rates concern as inflation misses target

http://www.telegraph.co.uk/finance/economics/interestrates/7888805/UK-rates-concern-as-inflation-misses-target.html

So an increase in core inflation measure, e.g. the shit we actually have to buy!

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The real question is, which measure do the BoE consider to be most important. I suspect there was insufficient in the figures to persuade them to increase interest rates this month.

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The real question is, which measure do the BoE consider to be most important. I suspect there was insufficient in the figures to persuade them to increase interest rates this month.

The MPC don't give a flying fig about inflation, despite it nominally being their raison d'etre.

The name of their game now is to try to stimulate the economy by making money as cheap as possible - or at least to stave off further economic contraction. Any amount of BS will be spouted in order to keep rates down. e.g. The introduction of a 20% VAT rate at the start of 2011 will provide a good hand-wavey excuse for above target figures for the whole of 2011.

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The MPC don't give a flying fig about inflation, despite it nominally being their raison d'etre.

The name of their game now is to try to stimulate the economy by making money as cheap as possible - or at least to stave off further economic contraction. Any amount of BS will be spouted in order to keep rates down. e.g. The introduction of a 20% VAT rate at the start of 2011 will provide a good hand-wavey excuse for above target figures for the whole of 2011.

Well, the bank's remit is to keep inflation at a median of 2%. They can stretch out the timescales as long as they like which they seem to be doing now. Yes, increased VAT will indeed make a good excuse for the 12 months after it's implemented. Goodbye my savings.

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