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Treasury Statement: Inflation Due To One Off Factors

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December inflation surge due to one-off factors - Treasury

12:02, Tuesday 18 January 2011
LONDON (
Reuters
) - A spike in inflation to an 8-month high of 3.7 percent in December was down to one-off factors and it is up to the Bank of England to decide what course of action to take, the Treasury said on Tuesday.
"As the Bank has explained, the current levels of inflation reflect one-off impacts such as last year's rise in VAT in January 2010, and rises in global commodity prices related to the fast-growing world economy," a Treasury spokesman said.
"Monetary policy is a matter for the Bank of England."
Inflation has been at least a percentage point above the Bank's 2 percent target throughout 2010 and is expected to climb to as high as 4 percent early this year as a result of another rise in Value Added Tax this January.

There is no inflation. Repeat after me: there is no inflation.......

Read:

If we are wrong its Merv's fault

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LONDON (Reuters) - A spike in inflation to an 8-month high of 3.7 percent in December was down to one-off factors and it is up to the Bank of England to decide what course of action to take, the Treasury said on Tuesday.

Oh one-off factors? In that case why cut rates in the first place? I mean, de-leveraging and HPC are both one-off factors - they only occur once and then the economy gets going again.

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13:35, Tuesday 18 January 2011
LONDON (
Reuters
) - Finance minister George Osborne said rising price pressures were a concern for the government, after official data showed consumer price inflation rose to its highest since April last month.

Merv is vigilant and George is concerned. Good init?

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"Monetary policy is a matter for the Bank of England."

This pat line is wearing thin too. Monetary policy may be a matter for the Bank of England (committee) but the Treasury sets the target and it's the Treasury's job to sack them if they consistently fall far wide of it.

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One off factors .....

Jan 2010- vat goes up 2.5%

Jan 2011 - vat goes up another 2.5% to 20%

The mpc is a joke!

yes, but it was still unexpected.

And commodities prices have nothing to do with Bernankes QE or indeed our own effort to race the £down with the dollar.

You see, if the country's interest was at heart, a good strong pound would be considered good...as it is, they want to preserve banks, so if the FED devalues, then so must we.

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One off factors .....

Jan 2010- vat goes up 2.5%

Jan 2011 - vat goes up another 2.5% to 20%

The mpc is a joke!

No they are highly educated twats.

Luckily we've got an on the ball press that's going to rip them to shreds over this... :ph34r:

We are here to be shafted.

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No it isn't.

Look how long 5% increases in the CPI Index have taken going backwards since last November

115.6 Nov 10

20 months

109.8 Mar 09

24 months

104.3 Mar 07

27 months

99.1 Dec 04

39 months

94.1 Apr 01

48 months

89.4 Apr 97

The time between each is shortening last one 20 months when Labour first got in 48 months.

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It's complete and utter tosh - they are not in denial - they know they've lost the plot - it's simply a PR exercise which has been going on for years and years.

Do they not realise that they're simply making things worse - inflation erodes wages and savings, which erodes spending power. An ECONOMIC DEATH SPIRAL IF EVER I HEARD OF ONE!

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yes, it's becoming rather sad now.

I was going to say inflation won't drop until the average man is totally stuffed.

But then I don't think the UK market is affecting our inflation and so inflation will never drop, how can it? The only way we can fight inflation is to make ourselves richer, however I don't think that is going to happen somehow. :unsure:

They won't inflate away the problem because they would need wages to rise with inflation which would make our exports less competitive and cause more unemployment. More unemployment equals more govt debt. More govt. debt and more inflation equals higher mortgage rates.

These current inflation figures have pushed the end game closer. They are trapped in a corner, save the banks by keeping interest rates low, but inflation starts to run away and ends up having the same effect as raising rates. This being that people can no longer afford the cost of living. Bond markets see the inflation and demand higher returns.

The beginning of the end game feels much closer now. The tipping point is approaching it just takes time, the question is can they save the gold before the coach falls over the edge, well it looks less likely now. :blink:

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Anyone read Anthony Hilton's gem in the London Evening Standard tonight?

Unable to locate it on the internet.

Basically the plonker said a little inflation was good as it eroded debts and this was countered by increases in wages.

Really?

I don't see wage s increasing anytime soon. Do you?

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Anyone read Anthony Hilton's gem in the London Evening Standard tonight?

Unable to locate it on the internet.

Basically the plonker said a little inflation was good as it eroded debts and this was countered by increases in wages.

Really?

I don't see wage s increasing anytime soon. Do you?

yes it was an incredibly stupid article.

he said people would pay more tax by moving into a higher wage bracket, but employers would keep wages down. :huh:

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  • 312 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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