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exiges

Inflation Up As Predicted

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http://www.statistics.gov.uk/cci/nugget.asp?id=19

CPI annual inflation – the Government’s target measure – was 4.4 per cent in February, up from 4.0 per cent in January.

The largest upward pressures to the change in CPI inflation came from:

domestic heating costs, particularly gas where average bills rose by 0.4 per cent between January and February this year but fell by 2.8 per cent a year ago, a record fall for a January to February period. There were smaller upward effects from electricity, where prices rose this year but were unchanged in 2010, and domestic heating oil, where prices fell by less than a year ago

clothing and footwear where prices, overall, rose by 3.6 per cent following the January sales. This was a record January to February movement, and compared with a 2.0 per cent rise a year ago. The upward effect came from garments, particularly women’s outerwear

miscellaneous goods and services: the upward contribution here was driven principally by financial services where charges were little changed between January and February this year compared with a 1.3 per cent fall a year ago. The main upward effects came from mortgage arrangement fees and foreign exchange charges

recreation and culture: where prices, overall, rose by 0.3 per cent this year but were little changed a year ago. There were small upward pressures from books and from games, toys and hobbies, particularly computer games, partially offset by a small downward pressure from digital cameras and camcorders

The largest downward pressure to the change in CPI inflation came from:

alcoholic beverages and tobacco where prices, overall, fell by 1.1 per cent compared with 0.4 per cent a year ago. The 1.1 per cent was a record monthly fall and follows the record monthly rise of 4.6 per cent between December 2010 and January 2011. The downward effect on the change in CPI inflation was driven by alcoholic beverages, particularly spirits

In the year to February, RPI annual inflation was 5.5 per cent, up from 5.1 per cent in January. The main factors affecting the CPI also affected the RPI.

RPIX inflation – the all items RPI excluding mortgage interest payments – was also 5.5 per cent in February, up from 5.1 per cent in January.

As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate in January was above the provisional figure for the European Union. The UK rate was 4.0 per cent whereas the EU’s as a whole was 2.8 per cent.

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Edited by exiges

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Duck! Another wave of screams from scared lobbyists pleading for BoE not to raise the interest rates. And it won't because it is "expecting." Yawn. Nothing to see here, move on, move on!

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Perhaps someone can help me.

I thought that CPI didnt include housing costs, and RPI did.

Doesnt that mean when house prices are falling faster than the non-housing prices, as is the case now, then CPI should be higher than RPI?

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BoE really needs to do something radically different this time.

Maybe replace Mervin with Paris Hilton or at least hire some hottie as a spokesperson to comment on these smooth upward bending curves.

Then they can keep plebs quiet for another three years.

This is becoming economy's Fukushima.

Edited by refusnik

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I liked this bit from the BBC news site story:

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 5.5% from 5.1% in January, the highest rate for 20 years.

It'll be interesting to see exactly how high RPI goes when (if?) the BoE starts to normalize rates, which will cause the mortgage interest component of RPI to skyrocket.

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And it just keeps on climbing.

How long will Merv and co leave it till they start to inch rates up? I think they are going to leave it till their hand is forced and only then, they will just inch as slowly as possible. They know how close to the edge a large amount of the population is and the pound is too strong at current levels for Mervs liking.

Keeping rates this low might of bailed out the indebted for now, but it has encouraged many more people to take on debt they cannot afford . Barclays offered a friend of mine a mortgage at 5 times income who is in his late 40's!

I am still holding out from the madness and not buying a house and I feel for those who are having their saving eaten away.

90% of my house fund is looking good in NS@I at the moment but I am not so sure about the remaining 10% in equites!

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Keep calm, nothing to see here, all is going according to plan (the plan of the PTB to reduce the government debt by inflating it away and effectively reducing workers' salaries to chinese levels by not increasing them in line with inflation).

Please don't ask for a rise in line with inflation as you would hurt the bonus of your CEO and the profits of the shareholders.

Just continue doing your job quietly, while being grateful for the salary you are getting (even if it's barely enough to live), you wouldn't want to upset the system, would you?

---

Edited by wise_eagle

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One of the (few) things Brown did which he is given credit for is the BoE independence to set rates, but now that is being shown to be just as flawed as most of his other 'achievements'. I much favour decisions like this being taken by those accountable to the electorate in some way. Just pure, bare-faced theft.

I should be thankful to a degree, given that my investments are primed to do well out of just these circumstances(such is my confidence in our great leaders), but it is hardly a way to run an economy.

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I'm one of the lucky ones - in NS&I certs and just got a raise in line with inflation. But it's heartbreaking what they're doing to my old man. Back-breaking work for 40 years, just retired and now they're laying waste to his savings.

These criminals are sending the country down the road to hell and obliterating the last vestiges of honesty and dignity in the process. All to keep a bunch of smug pricks in their overpriced shitboxes.

I wish the price of 'inedible metal' would crash so I could go all-in, then get the hell out of dodge.

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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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