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Uk Inflation (Cpi) Remains Unchanged At 3.1%

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Can't believe there isn't already a thread on this, or have I missed it?

BBC article

UK Consumer Prices Index (CPI) inflation remained unchanged in August at 3.1%, according to the Office for National Statistics (ONS).

It means the rate remains well above the Bank of England's 2% target, and it brings to an end a three-month period during which the rate had been falling.

The unexpectedly high rate was boosted by strong rises in air fares, clothing and food. Fuel prices fell.

Retail Prices Index (RPI) inflation slowed to 4.7%, down from 4.8% in July.

Economists had forecast lower rates of inflation for August, with CPI expected at 2.9% and RPI at 4.6%.

Shock - horror - inflation 'unexpectedly' stayed high. 'Unexpected' only by the clueless, of course. So much for it being 'temporarily high'.

Surprised they aren't trumpeting the meagre 0.1% drop in RPI from 4.8% to 4.7%. Though of course 4.7% inflation is nothing to shout about when the base rate of interest is 0.5%.

Still, the media were happy to trumpet RPI as 'the inflation rate' when it briefly went negative. :angry:

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Can't believe there isn't already a thread on this, or have I missed it?

BBC article

Shock - horror - inflation 'unexpectedly' stayed high. 'Unexpected' only by the clueless, of course. So much for it being 'temporarily high'.

Surprised they aren't trumpeting the meagre 0.1% drop in RPI from 4.8% to 4.7%. Though of course 4.7% inflation is nothing to shout about when the base rate of interest is 0.5%.

Still, the media were happy to trumpet RPI as 'the inflation rate' when it briefly went negative. :angry:

4.7% RPI means the index itself has risen about 0.5% in the last month. A fairly normal rise for this time of year in recent years.

edit: actually closer to 0.35%

Edited by the_duke_of_hazzard

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Can't believe there isn't already a thread on this, or have I missed it?

BBC article

Shock - horror - inflation 'unexpectedly' stayed high. 'Unexpected' only by the clueless, of course. So much for it being 'temporarily high'.

Surprised they aren't trumpeting the meagre 0.1% drop in RPI from 4.8% to 4.7%. Though of course 4.7% inflation is nothing to shout about when the base rate of interest is 0.5%.

Still, the media were happy to trumpet RPI as 'the inflation rate' when it briefly went negative. :angry:

"Prices as measured by the Retail Prices Index (RPI) increased by 0.4% from 223.6 to 224.5" - that's how I would have put it.

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Some Pensions following RPI will get a 4.7 % rise in 2011 then. If the intention to follow CPI goes through, the rise will still be over 3%. Good news for some then. :)

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CPI would have fallen, but in the event did rise solely due to the prices of some items in the 'basket' having risen. But for those rises the forecast would have been correct. These unforseen rises are clearly a temporary factor and so can be overlooked for the purposes of monetary policy which looks at the forecast for inflation two years into the future. And sorrry no, we can't find the piece of paper that had the forecast on it from two years ago.

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CPI would have fallen, but in the event did rise solely due to the prices of some items in the 'basket' having risen. But for those rises the forecast would have been correct. These unforseen rises are clearly a temporary factor and so can be overlooked for the purposes of monetary policy which looks at the forecast for inflation two years into the future. And sorrry no, we can't find the piece of paper that had the forecast on it from two years ago.

This excuse is wearing thin.

It reminds me of my missus' overspending every month: "but this month I had so many extra expenses!"

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RPI is going to go through the roof when the bank is finally forced to raise interest rates, and the cost of paying a mortgage triples for those people now paying 1% on their home loans. Which will then lead to higher train fares and everything else that is tied to RPI. Which will keep inflation high for years, further impoverishing almost everyone in the country in order to bail out the banks and the property speculators.

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RPI is going to go through the roof when the bank is finally forced to raise interest rates, and the cost of paying a mortgage triples for those people now paying 1% on their home loans. Which will then lead to higher train fares and everything else that is tied to RPI. Which will keep inflation high for years, further impoverishing almost everyone in the country in order to bail out the banks and the property speculators.

But it won't bail them out - the interest rates rises will kill them. Increase in RPI will reduce spending, further impacting on mortgage affordability and availability

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House prices continue to remain "stagnant", bumping around at 0.2% up / 0.6% down month after month, while the price of everything else continues to rise by 3% month after month.

The next few years will be tight but I'm looking forward to that inflationary pay rise in about 3 years. I might even be able to afford to buy a house...

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This excuse is wearing thin.

It reminds me of my missus' overspending every month: "but this month I had so many extra expenses!"

The excuse for higher-than-targeted inflation for the the whole of 2011 will be the VAT rise to 20%.

Meanwhile, it's clearly the restoration of the 17.5% VAT rates (from the discounted 15% of 2009) that is keeping inflation so 'unexpectedly' high.... <_<

Hmmmm, I don't remember anyone in the media bringing up the deflationary effects of the VAT cut when the brief period of 'deflation' in 2009 was being heralded as the harbinger of deflationary death spiral :rolleyes:

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The pound jumped 0.6% against the dollar on the news, to $1.544, as markets priced in the probability that UK interest rates may rise sooner than previously expected.

Yeah, right.

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Right, that's it, I'm now a Bear again.

Average wage increases - around 1% - inflation - over 3% - the massive squeeze on consumer spending continues...

Edited by gruffydd

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Some Pensions following RPI will get a 4.7 % rise in 2011 then. If the intention to follow CPI goes through, the rise will still be over 3%. Good news for some then. :)

Of the ~£190 billion welfare budget, roughly £110 billion is old age benefits. A 4% rise in this would wipe out pretty much all the 'cost savings' identified in other areas of welfare...

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Quick question: As I understand it, the low BoE base rate only serves to recapitalise the banks. Once the banks are recapitalised... will they then raise the rates? if yes, how close to 'fully recapitalised' are they? (or as I suspect, are they all now hopelessley addicted to their new found margins)

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The excuse for higher-than-targeted inflation for the the whole of 2011 will be the VAT rise to 20%.

Meanwhile, it's clearly the restoration of the 17.5% VAT rates (from the discounted 15% of 2009) that is keeping inflation so 'unexpectedly' high.... <_<

Hmmmm, I don't remember anyone in the media bringing up the deflationary effects of the VAT cut when the brief period of 'deflation' in 2009 was being heralded as the harbinger of deflationary death spiral :rolleyes:

I assume that's why they stopped the index-linked bonds. People were piling in knowing they were onto a sure thing.

I wonder if they'll come back once the VAT rise comes in?

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I have an idea.

Suppose the B of E were to increase interest rates? They are after all at a historic low and I believe that rising rates can help contain, or even lower, inflation.

Still what the ****** do I know?

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I have an idea.

Suppose the B of E were to increase interest rates? They are after all at a historic low and I believe that rising rates can help contain, or even lower, inflation.

Yes, perhaps we could also make the B of E independent, with a specific mandate to keep inflation below a certain level like, oh, 2% perhaps.

The B of E would then be able to control inflation without political interference.

Hah, I know it must sound a bit crazy but it might work!

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Yes, perhaps we could also make the B of E independent, with a specific mandate to keep inflation below a certain level like, oh, 2% perhaps.

The B of E would then be able to control inflation without political interference.

Hah, I know it must sound a bit crazy but it might work!

You guys are just wild-eyed dreamers, everybody knows the Bank of England was founded in 1571 with the remit of providing infinite amounts of cheap debt so financial geniuses in the City could go around buying up real goods from the real economy and pay the interest on their debts by simply taking on even more cheap debt. There is nothing wrong with this system, hence the BoE's proud motto Ponzi in aeterna.

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  • 261 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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