Jump to content
House Price Crash Forum
exiges

Inflation Rises To 3.2%

Recommended Posts

http://www.independent.co.uk/news/uk/home-news/uk-inflation-rises-to-32-percent-in-october-2135327.html

Inflation in Britain rose unexpectedly to a four-month high in October, data showed on Tuesday, forcing Bank of England Governor Mervyn King to write another public letter explaining why inflation remains so far above target.

The Office for National Statistics said annual consumer price inflation rose to 3.2 percent last month, more than a percentage point above the central bank's 2 percent target.

That rise was led by higher petrol costs, a sharp jump in the price of computer games

I can't help but think that Merv has been hoping for more than 3.2%..

Eh ? Computer Games have that much of an impact ?!

Edited by exiges

Share this post


Link to post
Share on other sites

I love the randomness of these indices... "Inflation was sharply up, driven by construction costs and tinned prunes." One day people will look back at serious men in suits trying to manage prices this way and laugh.

Share this post


Link to post
Share on other sites

I see it's unexpected.

Again.

How many times are our so called experts going to get it so wrong we are paying them millions to trash our economy :angry:

Share this post


Link to post
Share on other sites

It's rising before the vat increase,

:lol:

Yep. Which was obvious really. Retailers are starting price ahead for the VAT rise. I don't know why none of the forecasters took this into account?

Share this post


Link to post
Share on other sites

Didn't Merv say last week he expected inflation to be over target pretty much all next year? So how can this news be 'unexpected'?!

He meant it will be over 2% all of next year - ie it should top and start moving down, not remain sticky/move up!

Share this post


Link to post
Share on other sites

I see RPI is at 4.5%.

Useful for those with RPI + 1% tax free certificates.

1.35%

:)

How many times are our so called experts going to get it so wrong we are paying them millions to trash our economy :angry:

It's deliberate.

Share this post


Link to post
Share on other sites

I see RPI is at 4.5%.

Useful for those with RPI + 1% tax free certificates.

Apart from a bit of Silver, Gold and Oil, 4k in I.L. certs is the only investment I have thats doing well in the traditional sense.

The bleaker posters on here would argue that right now any investment that isn't hammered is doing 'well'.

Share this post


Link to post
Share on other sites

How many times are our so called experts going to get it so wrong we are paying them millions to trash our economy :angry:

But they can ONLY get their millions by being wrong.

and they KNOW they are wrong.

ALL calculated & deliberate.

Share this post


Link to post
Share on other sites

Not looking good for 2011. Find a place for your cash people.

From the BBC:

The surprise rise in inflation means the Bank of England continues to face a policy dilemma.

What surprise rise? What policy dilemma? What planet are they on???

Share this post


Link to post
Share on other sites

Apart from a bit of Silver, Gold and Oil, 4k in I.L. certs is the only investment I have thats doing well in the traditional sense.

The bleaker posters on here would argue that right now any investment that isn't hammered is doing 'well'.

I piled into these a few years back and have been getting semi decent returns. Average about 2.5-3% per year net. For the next year I am hoping for more like 5-7%.

The % above RPI is only the average over the 3 years. It ramps up from year 1 to year 3 or 5. So some people on the 1.35% ones on a 5 year plan - could be getting something like 6.5-7% net - depending on the month bought.

Even if house prices remain flat in nominal terms (Which I doubt) - getting 5% + return for a few years will certainly make a nice dent if you decide to buy in 2012-2014 or so. If you have a nice wad saved of course.

Share this post


Link to post
Share on other sites

So how many of us are getting above inflation wage increases?

If you earned £30k in 2005 and earn £30k now you are about £4.5k a year worse off in purchasing power terms.

Corporate profits are at record highs both nominally and as a percentage of gdp but wages are a falling percentage of gdp.

http://economix.blogs.nytimes.com/2010/11/12/a-high-water-mark-for-profits/?src=busln

Still at least those evil unions have been crushed so there is no-one to stand up for the workers......

Share this post


Link to post
Share on other sites

:lol:

Not looking good for 2011. Find a place for your cash people.

http://www.marketoracle.co.uk/Article24284.html

The bank looks good to me. I'll probably get about 3% next year and prefer to lose a percent or two to general inflation (food, fuel etc), than lose tens of percent on a depreciating asset such as a house or risk it on the stock market. I spend a very small proportion of my overall worth on things that are currently effected by inflation so I'm not too bothered at the moment, if things change significantly I can move quickly, being in cash, liquidity is the key in these difficult times.

Please don't go on about gold, you know my views on that and to go over it all again would be really tedious.

Share this post


Link to post
Share on other sites

The bank looks good to me. I'll probably get about 3% next year and prefer to lose a percent or two to general inflation (food, fuel etc), than lose tens of percent on a depreciating asset such as a house or risk it on the stock market. I spend a very small proportion of my overall worth on things that are currently effected by inflation so I'm not too bothered at the moment, if things change significantly I can move quickly, being in cash, liquidity is the key in these difficult times.

Please don't go on about gold, you know my views on that and to go over it all again would be really tedious.

+1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 152 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.