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Uk Inflation Expected To Ease In Tuesdays Release

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http://www.theguardian.com/business/2013/aug/12/eurozone-crisis-japan-growth-slows

Looking ahead to tomorrow, official data are expected to show annual UK inflation slowed modestly to 2.8% in July from 2.9% in June.

Economists at Investec predict the June Consumer Prices Index will prove to be the peak, with inflation potentially falling below the Bank of England's 2% target in early 2014.

I feel the relief already prices only going up by 2.8%, success all round.

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I would not be surprised if shop inflation fell to next 1%. From memory Inflation in most of Euroipe is below 2% and now the devaluation effect has trickled through I would prices to be on par with Europe.

If you go back a couple of years to the big 30% devaluation you would have found that shopping Ireland or France to be much more expensive in the UK, but now prices are comparable - you don't save much driving over the border.

Once retail prices of fuel, electric food match that of Europe then what is going to drive inflation?

Only further devaluation will do the trick. Very dangerous, but I guess that the Dave & Carnage show will attempt a further 20% devaluation so they can get their illustrious growth back - never mind the 99% getting 20% poorer, that would also keep the London bubble going for another couple of years.

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I would not be surprised if shop inflation fell to next 1%. From memory Inflation in most of Euroipe is below 2% and now the devaluation effect has trickled through I would prices to be on par with Europe.

If you go back a couple of years to the big 30% devaluation you would have found that shopping Ireland or France to be much more expensive in the UK, but now prices are comparable - you don't save much driving over the border.

Once retail prices of fuel, electric food match that of Europe then what is going to drive inflation?

Only further devaluation will do the trick. Very dangerous, but I guess that the Dave & Carnage show will attempt a further 20% devaluation so they can get their illustrious growth back - never mind the 99% getting 20% poorer, that would also keep the London bubble going for another couple of years.

Carney would need to print savagely to have any hope of accomplishing that... ;)

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I don't suppose Carnage would worry about that.

He already said that he would keep rates low *forever. The next step will be more printing, but under another name. FFG - funding for government.

*forever - assuming that unemployment >7% was normal in a service based economy. Not everyone has a high enough IQ to participate.

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