Uk Inflation Expectations Hold Steady At 3.6 Percent In May - Boe

[interestrateripoff]

http://uk.reuters.com/article/2013/06/07/uk-britain-boe-inflation-idUKBRE9560CY20130607

Britons expect the same rate of inflation over the coming year as they did three months ago, a Bank of England survey showed on Friday.

The quarterly survey showed average public inflation expectations for the next 12 months held at 3.6 percent in May, well above the central bank's 2 percent inflation target.

At a two-year horizon, Britons expected inflation of 3.3 percent, and in five years time they saw inflation at 3.6 percent, also little changed from February.

The figures may disappoint members of the BoE's Monetary Policy Committee given consumer price inflation has eased to 2.4 percent and some private surveys have shown a modest easing in inflation expectations.

Great news for everyone, prices are still going up which can only be good news for the wider economy.

[Venger]

Only 3.6%, not to worry Carnage will soon fix that and get it back up to 5%, after all that's what he is here for .... to get the economy growing.

I'm doing my part in trying to lower inflation, by cutting my own personal aggregate demand.

As are many other people, through choice and through necessity, with only QE trying to mask that fact.

Yesterday's FT says between March 2009 and April 2013, the lending part of broad money (M4) which is a component of money in circulation, shrank a massive 19.4%. That broad money itself continued to grow but only until January 2010, because of BoE's quantitative easing. Yet even with further rounds of QE, broad money itself shrank 6.1 per cent between January 31 2010 and April 30 2013.

Edited June 7, 2013 by Venger

[winkie]

I'm doing my part in trying to lower inflation, by cutting my own personal aggregate demand.

As are many other people, through choice and through necessity, with only QE trying to mask that fact.

....that is what most will have to eventually do when there is only a finite pot available to spend....after the basic necessities in life everything else spent is personal or forced choice.....borrowing more only means less personal choice unless there is default or the capital is never repaid in the space of a reasonable lifetime....hey ho, the new paradigm.

[19 year mortgage 8itch]

Wage expectations?

[winkie]

Wage expectations?

Job expectations?

[zugzwang]

What a relief. I've just spent hours working out my inflation expectations for the next 12 months and came up with a figure of 3.7%.

[zugzwang]

I'm doing my part in trying to lower inflation, by cutting my own personal aggregate demand.

As are many other people, through choice and through necessity, with only QE trying to mask that fact.

Yesterday's FT says between March 2009 and April 2013, the lending part of broad money (M4) which is a component of money in circulation, shrank a massive 19.4%. That broad money itself continued to grow but only until January 2010, because of BoE's quantitative easing. Yet even with further rounds of QE, broad money itself shrank 6.1 per cent between January 31 2010 and April 30 2013.

Ahh, the old mythical Money Multiplier...Govt prints £1 gets £5 of growth... not.

[Tin Foil Hat]

It's a ******** figure created for the IMF/ECB etc and has no relation to what we see as citizens.

Food is up YoY 10-50%. Not one thing I buy is up by 3-4% and if it is the same price it's in a smaller quantity now.

Cold war era scamming and propaganda.

[crashmonitor]

It's a ******** figure created for the IMF/ECB etc and has no relation to what we see as citizens.

Food is up YoY 10-50%. Not one thing I buy is up by 3-4% and if it is the same price it's in a smaller quantity now.

Cold war era scamming and propaganda.

Indeed I have just read John Calverley's excellent book called 'When Bubbles Burst' and he maintains that CPI is over-recording inflation and that explains why Central Banks target 2% (well actually Merv has a higher covert target) otherwise we would have deflation.

One thing for sure, just lately the stuff you need like fuel and food is up by rather more than the headline rate. stuff you don't need like consumer goods and new cars do appear to be down.

[Ash4781]

Nice to see as Merv bows out inflation expectations are close to 2%.

[Sour Mash]

Indeed I have just read John Calverley's excellent book called 'When Bubbles Burst' and he maintains that CPI is over-recording inflation and that explains why Central Banks target 2% (well actually Merv has a higher covert target) otherwise we would have deflation.

One thing for sure, just lately the stuff you need like fuel and food is up by rather more than the headline rate. stuff you don't need like consumer goods and new cars do appear to be down.

Which shows that QE and all the other monetary scams are doing their real job of transferring wealth from those at the bottom of the money pyramid (the general public) to those at the top (banksters, their associates and other insiders).

[easy2012]

It's a ******** figure created for the IMF/ECB etc and has no relation to what we see as citizens.

Food is up YoY 10-50%. Not one thing I buy is up by 3-4% and if it is the same price it's in a smaller quantity now.

Cold war era scamming and propaganda.

You should buy Samsung Galaxy S4, it is probably twice as good and cost the same, so that is -50% inflation...

[Bruce Banner]

Indeed I have just read John Calverley's excellent book called 'When Bubbles Burst' and he maintains that CPI is over-recording inflation and that explains why Central Banks target 2% (well actually Merv has a higher covert target) otherwise we would have deflation.

One thing for sure, just lately the stuff you need like fuel and food is up by rather more than the headline rate. stuff you don't need like consumer goods and new cars do appear to be down.

I would add houses to your list of things you don't need. I bought a new car earlier this year and when house prices have fallen another 30% or so I'll be looking to buy a house. Deflation rules OK.

[zugzwang]

I would add houses to your list of things you don't need. I bought a new car earlier this year and when house prices have fallen another 30% or so I'll be looking to buy a house. Deflation rules OK.

Very little inflation in consumer prices but wage inflation has been lower still. Asset prices are a different matter. Without King and Osborne's constant intervention UK house prices would be down another 30% already. Who knows where the QE cash will show up next? Or whether Carney and the BoE will follow Bernanke and Abe down the Weimar rabbit hole?