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Cpi At Four Year Low

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Well personally I am happy with this. We love to exaggerate inflation on here, God knows why when we have cash savings. Unless you are chasing houses I guess the cash pot doesn't have to work that hard these days if you believe the stats...and I do.

Edited by crashmonitor

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Well personally I am happy with this. We love to exaggerate inflation on here, God knows why when we have cash savings. Unless you are chasing houses I guess the cash pot doesn't have to work that hard these days.

In no way do the paltry interest rates on offer compensate for the increase in the cost of living (and loss of purchasing power) of bank credit savings.

A reported annual 2.1% increase in prices grossly underestimates the actual situation IMO but even if it were accurate, I don't see much sign of widely available 3% pre-tax savings rates needed to offset that, except for long lock-in deals or promotions. Nor do typical payrises compensate for even this low headline rate.

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Well personally I am happy with this. We love to exaggerate inflation on here, God knows why when we have cash savings. Unless you are chasing houses I guess the cash pot doesn't have to work that hard these days if you believe the stats...and I do.

I said a while back, we had a thread on it, that it was the poor who had inflation because all of my main costs have either held station or dropped, with the exception of gas/electricity.

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In no way do the paltry interest rates on offer compensate for the increase in the cost of living (and loss of purchasing power) of bank credit savings.

A reported annual 2.1% increase in prices grossly underestimates the actual situation IMO but even if it were accurate, I don't see much sign of widely available 3% pre-tax savings rates needed to offset that, except for long lock-in deals or promotions. Nor do typical payrises compensate for even this low headline rate.

In my case I have a lot of unexpired fixes, NS and I certs bought prior to withdrawal, and ISAs are untaxed.......I am well up on 2.1% average weighted net. Maybe I don't need to buy into an inflated asset market after all.

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With inflation at BofE's target rate. Why should the BofE raise base rates?

They clearly won't raise rates - that's why they they design the CPI to under-report in the first place (and why they switched to CPI from RPI).

People can observe from their day to day experience that the price of living is shooting up and house prices are also on the rise despite the fact that five years of a screwed-up economy should dictate the opposite (strong deflation).

Just about the only things that aren't appreciably going are savings rates and wages. Strange, that. It's almost as if the general public are being milked of their earning power through salaries and savings in order to bail out the financial system and keep a structural deficit going. A bit like some sort of wealth transfer mechanism.

Could it perhaps be some sort of side effect of printing huge volumes 'money' (nominally government debt, but bought by the central bank) and repressing interest rates? Maybe I'm on to something here .... :rolleyes:

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In my case I have a lot of unexpired fixes, NS and I certs bought prior to withdrawal, and ISAs are untaxed.......I am well up on 2.1% average weighted net. Maybe I don't need to buy into an inflated asset market after all.

+1

Buying is a dead weight round your neck.

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Well personally I am happy with this. We love to exaggerate inflation on here, God knows why when we have cash savings. Unless you are chasing houses I guess the cash pot doesn't have to work that hard these days if you believe the stats...and I do.

Since the UK still needs desperately to de-leverage, naturally there's v. little inflation outside of Osborne's asset price bubbles. Not something I regard as particularly encouraging. The economy is clearly in a worse state today than it was five years ago; our debts unimaginably greater, the room for manouevre commensurately reduced. The next five years look like being unrelentingly bleak.

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The remit has changed BoE is now controlling unemployment not inflation ..... sorry changed again it's all to do with sustained growth (whatever that is defined as). Anyway not to worry it will be back up next month. And of course there is no account taken of the last FOUR years when inflation has been well above the 2% target.

If you ask me their remit has not changed...I think their remit is to save the banks, at all costs.

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With every passing month the RPI data is buried deeper in the ONS stats. This time I have been unable to find it. It is a big taboo these days, has anyone been able to locate the tables?

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With every passing month the RPI data is buried deeper in the ONS stats. This time I have been unable to find it. It is a big taboo these days, has anyone been able to locate the tables?

It is ridiculous, trying to extract their RPI data is like trying to mine a Bitcoin. I usually have to go to the Hants website to get a simple data chart (though not yet updated)

Wonder why the chumps at the NOS make their website so user unfriendly........

http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm

Edited by crashmonitor

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it failed to take into account recent increases in energy prices

The release mentions the slowdown in inflation is due to utilities and food so as soon as the new hikes kick in we'll be back to normal? Maybe someone could estimate but market commentary is cpi to rise again.

Edited by Ash4781

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Are those few companies that still give pay rises going to base that on these latest inflation figures? Is that why they've come in lower, or am I just being ultra-cynical?

Will Jan's figures include the increased train fares and energy rises, ie, will be a fair bit higher?

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The BBC agree with your analysis.............

http://www.bbc.co.uk/news/business-25413641

The thing that really stood out on that article was the phrase "Howard Archer, chief UK and European economist at IHS Global Insight"

That must have been manually typed. I wonder whether the journalist knew there's a Howard Archer at IHS global insight button on the key board. :P

Edited by gf3

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The BBC agree with your analysis.............

http://www.bbc.co.uk/news/business-25413641

Well alot of their reporters refer to the 'cost of living crisis' so I guess they have looked at in more detail than housing stat releases.. sorry a touch political.

I am not sure if there are the wage growth percentages in there. Looking forward to next year I guess if the cpi rises are weak on comparison and wage growth stronger in run up to election consumers will feel benefit in pockets. I think this might be the obr forecast.

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Bolleaux.

Pack sizes shrinking too.

The pack size seams to be getting bigger it's just the contains that are shrinking.

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