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Global Inflation: In Graphs

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http://www.telegraph...-in-graphs.html

See links for the charts.

All in positive territory.

India

China

India's makes ours look sluggish, although our Euro cousins all appear to have lower inflation.

It's not my imagination is it: China and the UK both have similar (reported) levels of inflation. Lucky for the UK it's a growth economy (!)

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It's not my imagination is it: China and the UK both have similar (reported) levels of inflation. Lucky for the UK it's a growth economy (!)

Or said govt's are equally good and masking the real inflation rate?

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It's not my imagination is it: China and the UK both have similar (reported) levels of inflation. Lucky for the UK it's a growth economy (!)

You cold argue that China and the UK have the largest remaining housing bubbles in the world, as a result all the inflation that hadn't already seeped into the rest of the system from that bubble still coontinues to wash its way through the rest of the economy.

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http://www.telegraph.co.uk/finance/economics/8389042/Global-inflation-in-graphs.html

See links for the charts.

All in positive territory.

India

China

India's makes ours look sluggish, although our Euro cousins all appear to have lower inflation.

so according to the poll, people will 'react to inflation expectations by spending less and saving more' ? Surely that is good news for the BoE ? Doesnt conventional econmic theory, and what TPTB at the BoE are probably afraid of, teach that in the face of inflation people begin to spend today rather than wait till tomorrow when their money will be worth less? Thus, presumably, we can expect to see little action from the BoE until either/both wages rise and/or spending patterns start to change accordingly.?

Edited by anonguest

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so according to the poll, people will 'react to inflation expectations by spending less and saving more' ? Surely that is good news for the BoE ? Doesnt conventional econmic theory, and what TPTB at the BoE are probably afraid of, teach that in the face of inflation people begin to spend today rather than wait till tomorrow when their money will be worth less? Thus, presumably, we can expect to see little action from the BoE until either/both wages rise and/or spending patterns start to change accordingly.?

If you're "close to the line" the conventional breaks down slightly. i.e. if you think in a year from now you won't be able to afford your regular outgoings you'd be likely to try and save up a bit now.

That suggests a high level of fiscal prudence on the part of individuals though, especially compared to, for example, the consumer behaviour at the end of 2008: 'It may be a horrific credit crunch and recession, but let's have a great Christmas shopping spree and worry about it in 2009!"

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If you're "close to the line" the conventional breaks down slightly. i.e. if you think in a year from now you won't be able to afford your regular outgoings you'd be likely to try and save up a bit now.

That suggests a high level of fiscal prudence on the part of individuals though, especially compared to, for example, the consumer behaviour at the end of 2008: 'It may be a horrific credit crunch and recession, but let's have a great Christmas shopping spree and worry about it in 2009!"

Fair point, which I agree with. I did oversimplify my statement a bit.

But..... at what point, based on either/both actual historical examples or academic textbooks, do people cease the saving attitude and start to recognise that their money will buy them less in the future than it does now - and so act accordingly by buying up future supplies.

It doesnt have to be just baked beans and toilet paper (as I vaguely recall seeing people 'bulk' buy, for explicitly those inflationary fear reasons, in the 1970's) - it can be a simple as filling your petrol tank to the brim, when previously you wouldnt have bothered, etc. Or, given that that last example implies a very high rate of inflation (i.e prices would have to change non-trivially by the tim eyou had emptied the tank after, say a fortnight), it might mean buying TWO shirts instead of just one, etc.

I vaguely recall having it explained to me that the reason for the 2%-ish CPI target is that this means prices rise not too fast or too slow (to accomodate the debt based monetary system, etc) - and that at such a rate price rises are largely imperceptible to most people, over their working lives. Whereas at 10% the change in prices starts to become much harder to ignore, even by the most financially cretinous.

Edited by anonguest

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  • 309 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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