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the_duke_of_hazzard

Biggest fall in RPI since Jan 2009

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reported on BBC website as UK inflation falls to two-year low in January...

https://www.bbc.co.uk/news/business-47224913

 

It highlights the easing of the 'income squeeze', marginal benefits for most.  I don't remember the reporting of the wealth transfer CRUSH as owners of land and property watched their wealth balloon by £100Ks due to deliberate UKGov HPI policy and renters savers watched their hopes and dreams crushed over the last few years...

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Garage man came round to talk about our car, happened to mention how quiet he is. In this area he's the cheapest AND the best imho. You have to wonder how the others are getting along.

Added that his customers are all saying the same thing.

Maybe the great debt bust is finally here?  Best of all, who says QE will even work again or at all?  Whichever way it works out entertainment looks to be guaranteed.

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Yet only a few weeks ago all the reports across the MSM were how consumer spending was down and people were ''feeling the squeeze''

 

Now all of a sudden they now announce that inflation has supposedly fallen to it's lowest level in years... hence everything is so cheap and affordable, so get out there and get spending you worthless plebs.

 

I can't believe anyone can be so gullible enough to lap this shit up.

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Fuel prices are up not down.......two months free of CT payments......wait until April, like transport increases will be way up above inflation just like the TV licence......;)

So taxes might not be in the basket of goods......but many things that are, are discretionary items, consumer goods and services add on extras.......if people are trying to pay down debt, save and pay their taxes it only common sense that they will be spending less in the shops and restaurants.

Edited by winkie

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Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, thinks that UK retail sales are likely to fall back again in February.

He points out that January's gain was powered by a rise in sales at food stores, which he thinks was boosted by discounting.

"Right now, households’ real incomes are being supported by low inflation, a decade-high rate of nominal wage growth and solid employment gains. Low confidence will prompt consumers to hold back from buying cars, booking holidays and moving home, but the High Street will be protected," he said.

big ticket items not being purchased, but basics like food and bog roll are up

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20 minutes ago, hurlerontheditch said:

Samuel Tombs, the chief UK economist at Pantheon Macroeconomics, thinks that UK retail sales are likely to fall back again in February.

He points out that January's gain was powered by a rise in sales at food stores, which he thinks was boosted by discounting.

"Right now, households’ real incomes are being supported by low inflation, a decade-high rate of nominal wage growth and solid employment gains. Low confidence will prompt consumers to hold back from buying cars, booking holidays and moving home, but the High Street will be protected," he said.

Eh? Decade-high rates wage growth and solid employment, but low consumer confidence? How does that work?

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8 minutes ago, dpg50000 said:

Eh? Decade-high rates wage growth and solid employment, but low consumer confidence? How does that work?

They have the same issue in the US:

 

A Financial System Headed For A Collision With Debt

The retail sales report for December – delayed because of the Government shut-down – was released this morning. It showed the largest monthly drop since September 2009. Online sales plunged 3.9%, the steepest drop since November 2008. Not surprisingly, sporting goods/hobby/musical instruments/books plunged 4.9%. This is evidence that the average household has been forced to cut back discretionary spending to pay for food, shelter and debt service (mortgage, auto, credit card, student loans).

http://investmentresearchdynamics.com/a-financial-system-headed-for-a-collision-with-debt/

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11 hours ago, dpg50000 said:

Eh? Decade-high rates wage growth and solid employment, but low consumer confidence? How does that work?

It's all relative I guess. For most of the last decade wages have fallen behind inflation. If wages then start rising by 0.2% pa more than inflation it's not exactly going to make people feel flush.

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On 13/02/2019 at 12:17, thewig said:

Just bang it back up again job done 

:lol::lol::lol::lol:

 

Thanks Mark

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Inflation is way above target: we’ll change the inflation benchmark to one that is consistently lower.

Inflation way above target: We’ll look through it because unemployment is too high.

inflation way above target: We’ll look through it because it is due to a fall in the value of the pound and is therefore temporary.  

Inflation way above target: we’ll Look through it because it is due to high oil prices.

Inflation is way above target: we’ll look through it because of Brexit uncertainty.

Inflation is a tenth of a percent below target: fire up the presses!  Prime the pumps of QE!  Prepare for negative base rates!  

Interst rates changes are one way only: you can reduce rates, but you can’t increase them again afterwards,  Lowering rates causes ssset prices to increase, which is politically expedient.  Raising rates lowers asset prices which is political suicide and also turns to trigger a recession which will (of course) require yet more rate cuts.  

 

 

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