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Uk Inflation Finally Falls To 2% Target - Business Live

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http://www.theguardian.com/business/2014/jan/14/markets-fall-on-growth-fears-ahead-of-uk-inflation-data-business-live

UK inflation hits lowest since November 2o09

This is the first time since 2009 that the UK inflation rate has hit the official target of 2% mandated by the Treasury.

The Office for National Statistics reported that prices rose by just 0.4% month-on-month in December.

Inflation was pushed down by lower food and recreation costs, while energy costs rose during the month (as higher fuel tariffs hit consumers).

It's a welcome surprise -- City economists had expected the Consumer Prices Index to remain at 2.1%.

Yeah the BoE hits it's target.

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One reason I am no longer hung up on crap interest rates. If you believe this data (I do) then 2% (net0 is doable with fixed rates bonds, especially if you have NS and I to back it up.

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I am waiting to hear someone admit that prices are rising less quickly because imports are less expensive as the £ has risen in value. The media have championed the low pound has being an aid to exports but little is said about the effect on inflation.

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I am waiting to hear someone admit that prices are rising less quickly because imports are less expensive as the £ has risen in value. The media have championed the low pound has being an aid to exports but little is said about the effect on inflation.

Like this?

Ed Conway (@EdConwaySky) tweeted at 9:59 am on Tue, Jan 14, 2014:

Don't forget the pound has risen 7.6% since Jul (trade-weighted). Given how reliant UK is on imported goods, this prob fed into lower prices

(

)

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Prices must never be allowed fall......prices and inflation must always go up and up and up.....how much will a loaf of bread be in ten years time?.....more the point how much will it cost to bake it? ;)

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There's no consumer price inflation because there's no consumer demand. There's no consumer demand because there's no recovery. There's no recovery because the economy is locked steadfastly in a deleveraging depression.

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There's no consumer price inflation because there's no consumer demand. There's no consumer demand because there's no recovery. There's no recovery because the economy is locked steadfastly in a deleveraging depression.

....no consumer demand, partly that, also the demand may be there but the ability to pay the price asked most certainly is not....therefore no sale. I agree where possible there is deleveraging happening, why, our leaders keep telling us that the deficit must come down, so going that step further so must the debt....practising what they are preaching, must be good.......the only way growth can therefore continue growing when walking through treacle is to import that growth something we are very good at doing, spending other peoples money, many other people spending their own little bit of money helps boost short-term demand over the short-term.... ;)

Edited by winkie

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How comes fuel hasn't come down, its still 130p.

My local Shell is £1.28 and doing an "offer" at the moment, buy 2 items like drinks or sweets and get 5p a liter off.

The cheapest item is Cadburys mini eggs £1.30 (x2), so to fill my 80 litre tank from empty I save an extra £1.40 and get some chocolate.

Truly awesome......

:-)

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RPI up from 2.6% to 2.7% though. How's that work?

Sssshhhh - We don't talk about RPI (except that one time it actually went negative, when it was trumpeted as heralding deflation. Hmmm - now where did that deflation go?)

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How comes fuel hasn't come down, its still 130p.

To be fair, the price of petrol at the pump has fallen quite considerably since around the start of last September, and stayed 'low' (relatively speaking).

However, it has fallen by nowhere near as much as it should have if we believe the justifications given for price rises every time the cost of crude goes up or the pound drops. In terms of inflation though, it will be helping to provide downward pressure on the figures.

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Yum just tucking into a nice meal of smart phones.

Later I'll be burning some tablet PC's for fuel.

Totally agree - Real inflation should be measured as 'Go around the supermarket - buy one cucumber, one brocolli, one cauli (etc etc) - one year later do the same - difference in prices is REAL inflation.

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Totally agree - Real inflation should be measured as 'Go around the supermarket - buy one cucumber, one brocolli, one cauli (etc etc) - one year later do the same - difference in prices is REAL inflation.

That would have given a lower figure this time round. According to the ONS, food prices have risen by less than the average rate of inflation over the last year. Energy costs have risen by more though.

Edited by snowflux

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Ps3, and old xbox games were discounted, they didn't seem to collect the new energy price tarriffs, etc, etc. I am not sure if there is a link to detailed ons release.

Interesting figure for the experimental stat that included housing costs.

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Totally agree - Real inflation should be measured as 'Go around the supermarket - buy one cucumber, one brocolli, one cauli (etc etc) - one year later do the same - difference in prices is REAL inflation.

Ill repeat the tale of a TV documentary about this very process.

Some years ago, but I see no reason why they would change, they had surveyors go round the supermarkets with clipboard and pen and they would jot down the prices of the month.

Fish fingers was the example they chose.

so all the surveyors sent their figures in to be collated...what happened next...the figures were produced....but wait...no...if there were any odd price changes, like fish fingers shot up, a manager had to review the figures.....and review them they did...if they were outside a certain limit...they "adjusted" the price on the grounds it was a temporary blip...

so a 5% rise in fishfingers recorded at the store was adjusted to be within the required bounds. et voila, fish fingers were now at the required inflation...next time, they would compare with the actual price from the last survey, and as a spike would have worked through, a price FALL may well have been recorded....no need to adjust for falls.

Its all a fiddle. they do the same with most if not all officially released stats.

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