Uk Inflation Rate Held Steady At 2.8% In March

[interestrateripoff]

http://www.bbc.co.uk/news/business-22165218

UK consumer price inflation held steady at 2.8% in March, at its highest level since May last year, the Office for National Statistics said.

Rises in the cost of books, digital cameras and car insurance were offset by lower inflation for petrol and diesel.

The Bank of England has said it expects inflation to exceed 3% later this year.

Many economists believe pressure from food prices, and gas and electricity bills will push up the rate.

In the longer term, the Bank had said it expects inflation to remain above its 2% target until early 2016.

Yeah, craps still getting more expensive. It's the inflation recovery.

[TheCountOfNowhere]

http://www.bbc.co.uk/news/business-22165218

Yeah, craps still getting more expensive. It's the inflation recovery.

+1

The BBC are reporting that the rate of house price inflation is slowing, only up 1.9% in the last year.

Still my 20% pay cut helps me keep up with any house price increase

[Frank Hovis]

And buried way down the article is the fact that real inflation rose to 3.3% as the BBC continues to collude with the government in reporting understated inflation figures:

Tuesday's figures from the ONS also showed that Retail Prices Index (RPI) inflation, which includes housing costs, rose to 3.3% in March from 3.2% in February.

[TheCountOfNowhere]

It is a poor show. Still when Carnage arrives he will really get inflation rising, that's what he has been hired to do and he did it very successfully in Canada as soon as he took over.

Thankfully we live in a democracy and we'll be able to vote to stop this.............

[thecrashingisles]

Thankfully we live in a democracy and we'll be able to vote to stop this.............

That was before we 'took politics out of interest rate decisions'.

Afterwards, I was having coffee with Tessa Jowell, one of Tony Blair's ministers, when Mrs Thatcher approached. She wanted to talk about Gordon Brown. Or rather she felt the need to castigate his decision to give independence to the Bank of England. "The poor wee bairn...the poor wee bairn," she repeated, saying this represented political weakness. "Is it not a good idea to take politics out of interest rate decisions?" I asked her politely, and certainly not disrespectfully. She turned to me. "Young man," she said, "Shut up!" Withered by Margaret Thatcher! I thought then that it doesn't get much better than this. http://www.independent.co.uk/voices/comment/mrs-thatcher-implanted-the-gene-of-greed-in-britain-8565716.html

Something else Thatcher had the right judgement on.

[shindigger]

Thankfully i have some Sovs....

Runs.......

[TheCountOfNowhere]

Thankfully i have some Sovs....

Runs.......

Thankfully I have a large stick to acquire Sovs when it all goes belly up

[shindigger]

Thankfully I have a large stick to acquire Sovs when it all goes belly up

I've moved....

[TheCountOfNowhere]

I've moved....

I know.

[TheCountOfNowhere]

Here's a graph of 5% real inflation onthe stuff we buy over 1% wage inflation...any one see any problem....

Edited April 16, 2013 by TheCountOfNowhere

[sossij]

Here's a graph of 5% real inflation onthe stuff we buy over 1% wage inflation...any one see any problem....

Edit. Thickness.

Edited April 16, 2013 by sossij

[shindigger]

I know.

Not really....:-)

[BlueRat]

+1

The BBC are reporting that the rate of house price inflation is slowing, only up 1.9% in the last year.

Still my 20% pay cut helps me keep up with any house price increase

"In Wales, house price inflation is now running at 4.1%, up from just 0.9% in January. Another region which is outpacing the national average is north-east England, where prices are up by 2.4%."

They changed the wording on this, someone must have complained. Earlier on it was something like "Another region doing well".

Edited April 16, 2013 by BlueRat

[sombreroloco]

If inflation was measured according to the 70's parameters, it would probably be 4 times as much.

[Executive Sadman]

That was before we 'took politics out of interest rate decisions'.

Afterwards, I was having coffee with Tessa Jowell, one of Tony Blair's ministers, when Mrs Thatcher approached. She wanted to talk about Gordon Brown. Or rather she felt the need to castigate his decision to give independence to the Bank of England. "The poor wee bairn...the poor wee bairn," she repeated, saying this represented political weakness. "Is it not a good idea to take politics out of interest rate decisions?" I asked her politely, and certainly not disrespectfully. She turned to me. "Young man," she said, "Shut up!" Withered by Margaret Thatcher! I thought then that it doesn't get much better than this. http://www.independent.co.uk/voices/comment/mrs-thatcher-implanted-the-gene-of-greed-in-britain-8565716.html

Something else Thatcher had the right judgement on.

Is politics ever out of the MPC?

treasury tells them what inflation target to achieve

Treasury feeds them fabricated CPI/RPI figs, constantly dropping 'inconvenient' items

Chancellor directly appoints the balance of MPC members

MPC members are all vetted by the elite to ensure they dont start to think for themselves.

Legally BoE may be independent. Practically, i dont see the difference.

[Dorkins]

Legally BoE may be independent. Practically, i dont see the difference.

The difference is that politicians no longer have to take the blame for an increasing cost of living as this is the "independent" BoE's remit.

[shindigger]

The difference is that politicians no longer have to take the blame for an increasing cost of living as this is the "independent" BoE's remit.

As McDoom sussed very quickly.

[tinker]

Is politics ever out of the MPC?

treasury tells them what inflation target to achieve

Treasury feeds them fabricated CPI/RPI figs, constantly dropping 'inconvenient' items

Chancellor directly appoints the balance of MPC members

MPC members are all vetted by the elite to ensure they dont start to think for themselves.

Legally BoE may be independent. Practically, i dont see the difference.

+1 Smoke and mirrors. We all fell for it at the time, then like all Brown's tricks, the truth would become obvious.

[thecrashingisles]

Is politics ever out of the MPC?

Precisely. The politics is still there but it allows the democratic body to abdicate responsibility.

[happy_renting]

That was before we 'took politics out of interest rate decisions'.

Afterwards, I was having coffee with Tessa Jowell, one of Tony Blair's ministers, when Mrs Thatcher approached. She wanted to talk about Gordon Brown. Or rather she felt the need to castigate his decision to give independence to the Bank of England. "The poor wee bairn...the poor wee bairn," she repeated, saying this represented political weakness. "Is it not a good idea to take politics out of interest rate decisions?" I asked her politely, and certainly not disrespectfully. She turned to me. "Young man," she said, "Shut up!" Withered by Margaret Thatcher! I thought then that it doesn't get much better than this. http://www.independent.co.uk/voices/comment/mrs-thatcher-implanted-the-gene-of-greed-in-britain-8565716.html

Something else Thatcher had the right judgement on.

i disagree... but the Bank of England governors do seem to have been political anyway, Merv failed to even attempt to keep to the targets, and I am certain the inflation figures are massaged anyway.

The mistake was to take areas of regulation and devolve them to two other bodies. The FSA in particular failed to keep an eye on the banks, and we all know how well that worked out.

[OnlyMe]

Precisely. The politics is still there but it allows the democratic body to abdicate responsibility.

That would be OK if the central bank then behaved hoestly and stuck by its stated mandate. But it doesn't, which begs the question is it institutionally dishonest or just manned by dishonest post holders, both lacking in any degree of accountability.

[Coffeehead]

They have developed a wonderful skill of "looking through" any inflation to some golden time x years in the future when we will turn to 2%. We are still almost 50% above target and they are expected to increase QE. Appalling abuse of their powers to control money.

[winkie]

If inflation was measured according to the 70's parameters, it would probably be 4 times as much.

....making the figures fit to suit.

Talking to someone the other day married, both receiving RPI linked to inflation work pensions annually, and also receiving state pensions on top, one received from age 60 for a good number of years, not to mention £300 pa fuel bonus. bus pass and free TV licence.....they said to me they have more money coming in each month than they need.....they said they were very lucky, I said surely you must have worked for it, they didn't agree with me...luck they said, lucky that they got a good private education and a degree that led to a good well paying job....then went on to say where they would be taking their next trip.

Some got what they have accumulated by being at the right place at the right time, knowing the right people.....others have to work very much harder to get even close to the same standard of living.......social mobility is dying .

[frederick]

Is politics ever out of the MPC?

treasury tells them what inflation target to achieve

Treasury feeds them fabricated CPI figs, constantly dropping 'inconvenient' items

Chancellor directly appoints the balance of MPC members

Legally BoE may be independent. Practically, i dont see the difference.

Corrected, The treasury does not feed RPI figures to MPC, it just acts as though they don't exist.

And try to cut the silly elite stuff.

[Coffeehead]

Some got what they have accumulated by being at the right place at the right time,

....social mobility is dying

This is the whole problem with this country just now. The policy of keeping inflation high and interest rates low keeps assets in the hands of older people and companies and crowds out the younger, more able. This is why every survey going shows young people cant save, don't have pensions, don't have any assets.

It's not an accident, it's not a freak occurrence, it is the natural conclusion to the policies that are being put in place by the MPC and the government.

It also holds back new growth industries and companies as all the best staff and locations are still held by inefficient companies that should have died off now by their loans going up through interest rates. Of course this destruction would be painfull but the staff and resources tied up in this company would have been released back into the economy and used to make something more profitable.

The MPC have stated numerous times that inflation in fine as long as its not wage inflation. They have explicitly said that they want to drive up asset prices and keep them out of the hands of people that work for a living and no one even batted an eye lid. Why don't the media call them on this?