crashmonitor Posted March 24, 2015 Share Posted March 24, 2015 Dosn't this mean we can expect measures to get inflation back up to 2% ? We could do with a bit of deflation to get back on target 9.75 years after CPI's inception at 100 in May 2005. Had the chumps followed the target this past decade we would be at 121.3 not 127.4. Deflation bring it on. Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 24, 2015 Share Posted March 24, 2015 Strange isn't it. We've had 'low' inflation for the last 10 - 15 years. Yet no-one can afford anything the cost of living has gone up so much in the last 10 years. Maybe CPI inflation should be renamed lieflation. Quote Link to comment Share on other sites More sharing options...
norseraider Posted March 24, 2015 Share Posted March 24, 2015 Just to be clear, do the food price 'reductions' take into account ingredient substitution, package shrinkage etc while the companies still charge the same price? This fall in CPI is entirely driven by Cadbury's switching Creme Eggs away from Dairy Milk Quote Link to comment Share on other sites More sharing options...
LandOfConfusion Posted March 24, 2015 Share Posted March 24, 2015 (edited) Dosn't this mean we can expect measures to get inflation back up to 2% ? Yes we probably should but as there is a general election in two months' time I wouldn't hold your breath just yet. And anyway the real secret is that deflation can be good for the masses (if not the Tory donors rich): [Disclaimer: I do not read the Daily Mail] Edited March 24, 2015 by LandOfConfusion Quote Link to comment Share on other sites More sharing options...
shindigger Posted March 24, 2015 Share Posted March 24, 2015 Finally, crumble in a cube of socialist coalition.... et voila. Cheaper feckin hooses mon. Quote Link to comment Share on other sites More sharing options...
norseraider Posted March 24, 2015 Share Posted March 24, 2015 @LandOfConfusion Suddenly it all makes sense: Gold in faeces 'worth millions'http://www.bbc.co.uk/news/science-environment-32026636 Quote Link to comment Share on other sites More sharing options...
rantnrave Posted March 24, 2015 Share Posted March 24, 2015 Take people's largest ever purchase out of the figures and ta da. Inflation falls to zero and house prices are pumped to the moon. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 24, 2015 Share Posted March 24, 2015 Dosn't this mean we can expect measures to get inflation back up to 2% ? As I've argued for the best part of two years, the next move in UK interest rates is down not up. Quote Link to comment Share on other sites More sharing options...
R K Posted March 24, 2015 Author Share Posted March 24, 2015 David Cameron @David_Cameron 2h2 hours ago Inflation is running at 0% - the lowest on record. It's good news for family budgets and a sign our long term plan is working. ? - So why have you told BoE to target 2%? Quote Link to comment Share on other sites More sharing options...
awaytogo Posted March 24, 2015 Share Posted March 24, 2015 (edited) Take people's largest ever purchase out of the figures and ta da. Inflation falls to zero and house prices are pumped to the moon. Surely CPI at present will be a force in wage negotiations and follow through to wage rise curtailment, This will affect lending values when used in MMR calculations. Edited March 24, 2015 by awaytogo Quote Link to comment Share on other sites More sharing options...
Guest Posted March 24, 2015 Share Posted March 24, 2015 How much worse off are we cumulatively over the last decade? Wages and savings interest have been behind CPI for a long time. What is house price inflation running at? It's meaningless to say that computers and sofas are cheaper when a roof over my head is still out of reach. Quote Link to comment Share on other sites More sharing options...
LandOfConfusion Posted March 24, 2015 Share Posted March 24, 2015 Gold in faeces 'worth millions'http://www.bbc.co.uk/news/science-environment-32026636 Ahh so that's what they mean by "filthy rich". Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 24, 2015 Share Posted March 24, 2015 David Cameron @David_Cameron 2h2 hours ago Inflation is running at 0% - the lowest on record. It's good news for family budgets and a sign our long term plan is working. ? - So why have you told BoE to target 2%? To sustain debt repayments??? It will be interesting to see how this impacts govt tax revenues especially if we have price deflation, the VAT intake is going to decline. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 24, 2015 Share Posted March 24, 2015 http://www.bbc.co.uk/news/business-32033926 .. So the driver of falling inflation looks to be the strength of sterling, especially against the weakening euro - which is reducing the cost of imports. The important point is that, for now at least, the fall in the price of food, games, petrol and energy, if it persists for a few months, is good news for most of us - because it increases our spending power and our pounds go further. In other words we feel and are a bit richer. Peston stating it's the strength of the pound... Quote Link to comment Share on other sites More sharing options...
awaytogo Posted March 24, 2015 Share Posted March 24, 2015 How much worse off are we cumulatively over the last decade? Wages and savings interest have been behind CPI for a long time. What is house price inflation running at? It's meaningless to say that computers and sofas are cheaper when a roof over my head is still out of reach. http://www.bbc.co.uk/news/business-32032561 ONS: UK House prices fall 0.2% in January Quote Link to comment Share on other sites More sharing options...
pipllman Posted March 24, 2015 Share Posted March 24, 2015 interest rate cuts coming soon? Quote Link to comment Share on other sites More sharing options...
Assume The Opposite Posted March 24, 2015 Share Posted March 24, 2015 Central banks must be shitting themselves. They are. Here comes QE with a vengeance. They can't let asset prices fall. Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted March 24, 2015 Share Posted March 24, 2015 They are. Here comes QE with a vengeance. They can't let asset prices fall. But qe has failed already. Hence the deflation. If inflation zero or negative boe can't make real rates negative. Quote Link to comment Share on other sites More sharing options...
thehowler Posted March 24, 2015 Share Posted March 24, 2015 Oh, those days of Carney's forward guidance on rate rises seem like a rosy memory. Why does it feel as though the world economy is grinding to a halt? Could it be mild mannered...debt? Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted March 24, 2015 Share Posted March 24, 2015 (edited) Interesting that index linked gilts have risen after the announcement of the relevant inflation figure - RPI at 1.0%. This suggests that the markets were expecting a lower RPI figure, and/or further downwards pressure on interest rates. Edited March 24, 2015 by The Spaniard Quote Link to comment Share on other sites More sharing options...
council dweller Posted March 24, 2015 Share Posted March 24, 2015 Nickos...... Isn`t that what happened in the 1930`s? Quote Link to comment Share on other sites More sharing options...
janch Posted March 24, 2015 Share Posted March 24, 2015 Take people's largest ever purchase out of the figures and ta da. Inflation falls to zero and house prices are pumped to the moon. Yes. If you include the price of housing then we are far from zero inflation. Quote Link to comment Share on other sites More sharing options...
billybong Posted March 24, 2015 Share Posted March 24, 2015 (edited) Yes we probably should but as there is a general election in two months' time I wouldn't hold your breath just yet. And anyway the real secret is that deflation can be good for the masses (if not the Tory donors rich): [Disclaimer: I do not read the Daily Mail] There are a lot of possible jokes from that article. Some cheap jokes as well but I guess that would be bad. Edited March 24, 2015 by billybong Quote Link to comment Share on other sites More sharing options...
billybong Posted March 24, 2015 Share Posted March 24, 2015 Surprising that the drop in the price of fuel didn't seem to rate a mention. Quote Link to comment Share on other sites More sharing options...
shindigger Posted March 24, 2015 Share Posted March 24, 2015 Surprising that the drop in the price of fuel didn't seem to rate a mention. Its going back up again in the shires. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.