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The Spaniard

Cpi 4.2% Rpi 5.0% To June 2011

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British inflation will fall back towards its 2 percent target during the next two years, Bank of England Governor Mervyn King said in a foreword to the central bank's annual report, published on Monday.

It's almost like he knew what was coming.....

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The RPI index has gone stagnant. If this continues, the BoE will have been proved right. I'm still betting against it though.

You may be proven right in end. However how are other countires fairing against inflation where rates have been risen?

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The RPI index has gone stagnant. If this continues, the BoE will have been proved right. I'm still betting against it though.

It's what you'd expect if the inflation was a one-time pulse resulting from currency devaluation/commodity prices going up.

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Don't worry, if it starts dropping back to the 2% level, I'm sure Merv will crank up the printing presses once again, to ensure that we don't drop below it.

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Drop in the annual rate was primarily due to price discounting on computer games, digital cameras, DVDs, and televisions.

Next month is the one to watch for potential headline impact. Between June and July last year CPI fell from 114.6 to 114.3. Currently it stands at 119.4, so a print of (say) 119.7 in July will give an annual increase of 4.7%.

Similarly with RPI which last year fell from 224.1 to 223.6 between June and July.

Edit: originally put 236.6 instead of 223.6 for July 2010.

Edited by FreeTrader

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It's what you'd expect if the inflation was a one-time pulse resulting from currency devaluation/commodity prices going up.

A 'one-time pulse' that's lasted for oh, 2-3 years now.

But hey, inflation has now plunged to 210% of the target level so things must be looking up. :rolleyes:

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Don't worry, if it starts dropping back to the 2% level, I'm sure Merv will crank up the printing presses once again, to ensure that we don't drop below it.

Must be frustrating for old Merv, he's not printed for a while now. Be a shame to let all that power to create money out of thin air to go to waste really...

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Drop in the annual rate was primarily due to price discounting on computer games, digital cameras, DVDs, and televisions.

Next month is the one to watch for potential headline impact. Between June and July last year CPI fell from 114.6 to 114.3. Currently it stands at 119.4, so a print of (say) 119.7 in July will give an annual increase of 4.7%.

Similarly with RPI which last year fell from 224.1 to 236.6 between June and July.

Thanks for another useful post! So could be a big bounce back next month.

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The RPI index has gone stagnant. If this continues, the BoE will have been proved right. I'm still betting against it though.

Ns&i certificates launched just at the right time!

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Coming ahead of the August MPC vote - one of the months more likely for any IR rise - so no surprise really.

Indeed!

In any case the inflation that's occurred this far stays, it's not like prices drop back when the inflation rate drops back, it's that the prices aren't (officially) rising at the rate they were rising at for some time

Not that I believe their figures anyway, my trust in the BoE was lost a long time ago, and their cred vanished at the same time as they put that silly game on their website

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Ns&i certificates launched just at the right time!

Quite.

They spend most months looking to see what they could put in the basket that will be falling in value, seasick green toasters, secondhand typewriters and maps of Rhodesia probably into the basket next month

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Coming ahead of the August MPC vote - one of the months more likely for any IR rise - so no surprise really.

Expectations are now for the first rise to be well into 2012. I don't think anyone is seriously thinking rates will rise this August.

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Expectations are now for the first rise to be well into 2012. I don't think anyone is seriously thinking rates will rise this August.

Lets hope so. My gamble is on track to pay of nicely. Could do with the Yen weaking but hey Interest rates low for the next year will be great.

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  • 284 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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