Interest Rates May Rise Next Year, Says Bank Of England Chief Economist

[honkydonkey]

The all-items inflation rate represents everything people spend money on: haircuts, plane tickets, medical care, clothes -- you name it. But, that number is puffed up by the pesky necessities -- food and energy. So those two categories are discarded when calculating the core inflation rate.

Read more: http://www.bankrate.com/finance/personal-finance/is-inflation-higher-than-you-think-1.aspx#ixzz2i3V8bhXc

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[19 year mortgage 8itch]

British Gas up almost 10% - how will they keep that out of the inflation figures?

Because domestic fuel price increases are one off uncontrolable events so no point worrying about them.

Consistently one-off...

Ed Conway (@EdConwaySky) tweeted at 10:26 am on Thu, Oct 17, 2013:

Here's how energy bills have increased (vs CPI inflation) since 2005. We're about to have another of those big jumps

http://t.co/FBDOtaUBMB

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[winkie]

The only way BoE would hike rates is if wage rates for the plebs starts to rise. In fact that wage growth is expected as UK services sector just had its best quarter in 16 yr.

That is what governments want....wage inflation, fine if you have a job, fine if you have an employer that can afford it, fine if there are people that have a demand, want and can afford what you offer, fine if you are not on irregular hours, few benefits and don't know if there will still be a job for you in six months time......

[Harry Monk]

British Gas up almost 10% - how will they keep that out of the inflation figures?

That will be balanced out by the fact that some Ryanair flight to some crappy airfield in Poland that nobody has ever heard of came down by a tenner.