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Uk Inflation Hits 1% - Breaking News


kev-all-in
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The BBC calculator puts my inflation at 1.5%..........about half way down on the right (questionaire)

Of course that's because I left school at 16, so must be a total chav whose just spent a thousand quid on novelty Christmas lights and snowmen for the front garden (that's a reference to my bloody neighbour who has just gone and done that...yep i'm a total snob about that sort of thing), fought for a 50" flat screen on black Friday, smoke 100 a day and drink litres of white lightning...according to the computer that is.

http://www.bbc.co.uk/news/10612209

Edited by crashmonitor
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Makes the 1% earned on savings not sound that bad.....could be worse.

Just read similar in story about New Zealand..

Nonetheless with inflation probably now below 1% McLachlan suggested savers are doing "pretty well" out of their returns.

The NZ story It was in an article similar to SP's thread the other day... lenders, and so many new lenders in the market since 2007, looking for willing borrowers who have proven to be very timid (prices + economic outlook perhaps?). A picture of so much credit available, for now, against prices which haven't yet fallen back. RK ask workers at Rolls Royce about their payrises. If lenders can't find the borrowers, for the velocity of debt they would like to get out there.. maybe lenders have to contract.

Battling U.k. Property Lenders Cut Margins To 6-Year Low

Started by Sancho Panza, Yesterday, 01:43 PM

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Didn't the Victorians enjoy periods of deflation?

I've got a chart for South English consumer prices showing inflationary years from the sixteenth century (57 vs 43 Deflationary years) to the nineteenth century (early statistics are not fully dependable). It's basically 50-50 in each century, although inflation building up over each century, compounding considerably.

'Even in the sixteenth century, the most inflationary period to the twentieth century, prices fell during forty-three years. Among those deflationary years was 1558, when the best records show that prices fell by more than 40 percent.'

The Tee-Totter Breaks

The current inflation has been more severe than those of the previous four centuries combined. Inflation has become uncharacteristically persistent. There have been few deflationary years to offset the compounding of prices during the inflationary years. It is clear that inflation has been uncharacteristically severe and persistent since 1950. The usual response of those who expect perpetual inflation is to point out that more money paper is circulating than ever before, but so is a lot more debt.

British consumer prices rose by more than 3000 percent from 1900 to 1983. Almost all the gain occurred after 1935.
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200g almonds at lidl just gone up from 1.60 to 2.20 euros. I used to buy them a lot a couple of years ago when they were 1.20 or something. Nescafé gold blend went up fro 7 to 9 euros about 6 or 12 months ago. 1 kg flour up from 25c to 35c. Not seeing any sigificant falls in my supermarket basket, but it is probably true generally that goods inflation is fairly modest.

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BBC link

CPI down from 1.3% to 1%

It's going to get interesting when the fuel price drops come through in the next few months!

Do remember when inflation was rising and wage weren't people were saying tis the wrong kind of inflation.

It is quite possible that if wages rise a little, and fuel costs fall (which will reduce the cost of all goods than need transport or use hydrocarbons in their production) then it may actually turn out to be the right kind of deflation rather than the wrong kind.

If this purely down to OPEC trying to destroy shale gas etc, then I'd suggest the US put taxes on oil from OPEC to keep the price high enough to support their domestic production

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