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Uk Inflation Rises More Than Expected In April To 1.8 Percent

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http://uk.reuters.com/article/2014/05/20/uk-britain-inflation-idUKKBN0E00N120140520

British inflation in April rose more than expected from its lowest level in more than four years as the Easter holidays pushed up the cost of travelling, official data showed on Tuesday.

The consumer price index rose to an annual rate of 1.8 percent last month from 1.6 percent in March, according to the Office for National Statistics.

Economists in a Reuters poll had expected the index to rise by 1.7 percent.

Higher airfares and other transport costs, including a stronger reading of fuel prices compared with a year ago, helped push up inflation in April.

Getting closer to that all important 2% inflation growth figure. Relief all round I would have thought.

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http://uk.reuters.com/article/2014/05/20/uk-britain-inflation-idUKKBN0E00N120140520

Getting closer to that all important 2% inflation growth figure. Relief all round I would have thought.

Hang on, I thought wages were supposed to be outstripping prices and the cost of living crisis was over? Another foot-in-mouth episode from serial blunderer Mark 'The Kid' Carnage.

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Hang on, I thought wages were supposed to be outstripping prices and the cost of living crisis was over? Another foot-in-mouth episode from serial blunderer Mark 'The Kid' Carnage.

Only for the one month! I wonder what they will say when inflation gets to 2% and then just keeps marching on! :rolleyes:

Edited by renting til I die

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Only for the one month! I wonder what they will say when inflation gets to 2% and then just keeps marching on!

They'll say in the medium term it is forecast to fall back to 2% and are afraid that a rise in rates will cause an undershoot. Weren't you paying attention the last few years?

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Is this an easter timing effect? Maybe the tour operators cost of holidays is more for an April easter?

Anyone in sector or thoughts?

Edited by Ash4781

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Mish (a long time deflationist) has been warning of big price increases in the pipeline for food, in the US, so quite likely we'll see those pressures here too, pushing inflation higher.

Still of course waiting for actual deflation which some have been assuring us has been on the doorstep for the last five years.

The bottom line is that the authorities are quite capable of creating inflation if the will to do so is there.

Absent of Central Bank and government meddling in the free markets we most assuredly would have had strong deflation back in 2008 but in fact, thanks to money printing and financial repression we have instead had quite strong asset price inflation and robust general inflation over the years of the economic slump.

Just take a look at the (heavily fiddled downwards) official CPI figures since 2007 - bear in mind that the target is 2%. For the majority of the time, that target was easily met and exceeded.

http://www.rateinflation.com/inflation-rate/uk-historical-inflation-rate?start-year=2007&end-year=2014

Year jan feb mar apr may jun jul aug sep oct nov dec ann

2014 1.9% 1.7% 1.6%

2013 2.7% 2.8% 2.8% 2.4% 2.7% 2.9% 2.8% 2.7% 2.7% 2.2% 2.1% 2% 2.5%

2012 3.6% 3.4% 3.5% 3% 2.8% 2.4% 2.6% 2.5% 2.2% 2.6% 2.6% 2.7% 2.8%

2011 4% 4.3% 4.1% 4.5% 4.5% 4.2% 4.5% 4.5% 5.2% 5% 4.8% 4.2% 4.5%

2010 3.4% 3% 3.4% 3.7% 3.3% 3.2% 3.1% 3.1% 3% 3.1% 3.2% 3.7% 3.3%

2009 3% 3.1% 2.9% 2.3% 2.2% 1.8% 1.7% 1.5% 1.1% 1.5% 1.9% 2.8% 2.2%

2008 2.2% 2.5% 2.4% 3% 3.3% 3.8% 4.4% 4.8% 5.2% 4.5% 4.1% 3.1% 3.6%

2007 2.7% 2.8% 3.1% 2.8% 2.5% 2.4% 1.9% 1.7% 1.7% 2% 2.1% 2.1% 2.3%

(figures taken from rateinflation.com)

Edited by Sour Mash

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Is this an easter timing effect? Maybe the tour operators cost of holidays is more for an April easter?

Anyone in sector or thoughts?

Apparently so.......

a0569ec7-2d32-4a17-b104-d632763c7d66-460

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Is this an easter timing effect? Maybe the tour operators cost of holidays is more for an April easter?

Anyone in sector or thoughts?

Easter is a movable feast, just like Carney's Forward Guidence.

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