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Realistbear

U K Inflation Rate Announced --its Up Sharply

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http://today.reuters.co.uk/news/newsarticl...IN-PRODUCER.xml

LONDON (Reuters) - Factory gate inflation picked up more than expected in January as raw material costs surged in a sign that higher crude oil prices are pushing their way through the supply chain.
The Office for National Statistics said on Monday output prices rose 0.4 percent on the month, taking the annual rate of
increase to 2.9 percent
from 2.4 percent in December and compared with a forecast of 2.7 percent.
The figures are likely to boost concern that inflationary pressures from energy costs have not abated completely and could still work their way through to the consumer and
may reduce expectations of imminent Bank of England interest rate cuts.
Newspapers have reported
household bills could rise by as much as 25 percent in coming months
, putting upward pressure on inflation but also risking dampening consumer spending.

Not looking good for higher house prices is it?

HPC 2006.

Just in:

http://www.iii.co.uk/news/?type=afxnews&ar...&action=article

Edited by Realistbear

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PPI Input s.a. (MOM) +1.8% (market expected +1.2%) (YOY ) +16.2% (+1.7%)

PPI Output n.s.a. (MOM) +0.4% (+0.2%) (YOY) + 2.9% (2.7%)

Core figures were in line with market expectations.

I hear the CBI were calling for lower rates on the back of higher energy prices.

High energy prices 'dog UK firms'

I would have thought that increased costs should lead to rate rises not the opposite. I've got it wrong again.

Edited by Sisyphus

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Nice start to the day!

Isn't it just! There is a slew of good news out today and I am wondering what the VIs must be cobbling together to convince the sheeple that, no matter what, FTBs are still out in force and the market looks set to rise about 4.6% in 2006? :):D:lol::lol::lol::lol:

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Nope - but it's looking good for higher Intrest rates!

can't wait, greedy people will soon feel the squeeze and will wonder why they have no cash to play with as they sit watching their plasma tv sitting in their credit sofa.

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Was reading this weekend typical annual fuels bills are expected to increase from £835 to ~£1300 pa for gas, electric and water combined. Taking another £40 pcm off Joe Public and his missus.

Who needs a rate rise when British Gas are putting their foot down. After reporting record profits too!

As the North Sea continues to wind down the cost of domestic bills will continue to spiral.

The North Sea has produced 34 billion barrels of oil to date, there are 28 billion barrels left.

The oil that is left is the most expensive to extract (you drill the cheap stuff first).

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From the Blog

http://www.thisismoney.co.uk/news/article....18&in_page_id=2

Meanwhile, inflation is being pushed up by energy prices. Dicks said the Consumer Prices Index, now at the official target of two per cent, is heading for 2.2% for January.

CPI Inflation appears to be rising again having fallen back over the autumn. I'd say the output prices are already starting to feed through, especially as some of the lower priced outlets are going under, reducing competition.

This year is getting off to a bad start, and it will get much worse before it gets any better.

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Newspapers have reported household bills could rise by as much as 25 percent in coming months

Boy, it's so lucky we have low inflation, isn't it?

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Guest Bart of Darkness

I'm sorry to be contrary but this is surely a case for a rate cut?

I mean what isn't these days?

Those poor retailers are crying out for a rate cut don't y'know. After all, a 0.25% cut will magically reinvigorate the economy and send us all on the path to endless riches.

Heh... but seriously, the US have recently upped their rates, so Gordon, up yours!

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isn't it odd that this information (case for a rate rise) comes out after the bank of evermore met last week, but any information suggesting that a rate cut is needed comes out a few days before they meet.

or am i just paranoid?

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I don't actually think the BOE cares about inflation, all the bank is interested in is keeping house prices

high for as long as possible. Inflation could be 10% the BOE will still be talking about a cut.

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I don't actually think the BOE cares about inflation, all the bank is interested in is keeping house prices

high for as long as possible. Inflation could be 10% the BOE will still be talking about a cut.

I think this was true. However, I am detecting some subtle distancing going on in the light of all the dismal economic news (especially unemployment). Brown seems to be more and more maginalised as if "they" are setting him up as the deserved "fall guy." Not too many photo ops with Brown and Blair together which might be expected if he really was to be the successor. Don't forget Blair is a much shrewder operator than Brown and can easily turn the tables once enough people see that the state of the economy is his fault. Anyone else noticing this?

Edited by Realistbear

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I don't actually think the BOE cares about inflation, all the bank is interested in is keeping house prices

high for as long as possible. Inflation could be 10% the BOE will still be talking about a cut.

Yes, that is it.

Rising House Prices = Happy Pensioners (No pressure on government with pensions)

Rising House Prices = MEW'ing Happy Retailers and consumers

Rising House Prices = General Feeling of Wealth

Rising House Prices = Higher Tax income to the government from above

House Prices Start to Decline = All of the above start to reverse

House Prices Start to Decline = Pressure on Government to raise taxes and GOVERNMENT GET THROWN OUT AT NEXT ELECTION

Edited by Pluto

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How much of this is actually going to register?

The prices rises for both gas and electricity are estimated at being over 20% this year.

Energy prices last year went up by an average of 13%.

I was going through my grans (unmetered) water bills last night.

2000 £143

2001 £147

2005 £187

An average rise of 7% over 4 years!

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How much of this is actually going to register?

The prices rises for both gas and electricity are estimated at being over 20% this year.

Energy prices last year went up by an average of 13%.

I was going through my grans (unmetered) water bills last night.

2000 £143

2001 £147

2005 £187

An average rise of 7% over 4 years!

She should join a union.

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How much of this is actually going to register?

The prices rises for both gas and electricity are estimated at being over 20% this year.

Energy prices last year went up by an average of 13%.

I was going through my grans (unmetered) water bills last night.

2000 £143

2001 £147

2005 £187

An average rise of 7% over 4 years!

as you say it is well above inflation, isnt it ?

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Just sit back and watch this economic miracle slowwwwly unwind

It'll happen, it just needs patience and time, oh and nerve :)

It might take nerve to wait..

but the trully brave..

"I have just taken out an Interest Only mortgage and had to borrow 9 times my salary but I have a starter home.. Okay, I did promise that I would set up a repayment vehicle and I havent and I must admit I was a little fast an loose with the amount I earn... Everyone's doing it"

"I'm not"

"Why not?"

"Well, it's criminal and after reading up on the market and everything Mervin King has said I will wait for prices to come down.."

"You took the time to do that you saddo"

"You borrowed how much withour doing so?"

That sort of conversation, you think it's brave to wait... ?

You would need balls the size of grapefruit to buy..

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  • 341 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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