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Realistbear

E U Inflation Marches To 2.4% From 2.2%

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http://www.rte.ie/business/2006/0228/eurozone.html

Euro inflation climbs towards peak

February 28, 2006 10:35
The annual rate of inflation in the euro zone rose to 2.4% in January from 2.2% in December, according to the EU's statistics agency Eurostat.
The result confirmed an initial estimate from Eurostat and was also in line with economists' forecasts.
The rate shows that inflation is inching back up to a peak of 2.6% hit last September as oil prices resume their upward climb after an autumn respite. Eurostat said that fuel for transport, heating oil and gas had contributed the most to the increase in January.
The January rate means that inflation is once again well over the European Central Bank's preferred level of close to but less than 2%,
which is likely to increase expectations of an interest rate rise on Thursday
.

The real rate of inflation?

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Euro inflation climbs towards peak

Now that oil seems to be / has been staying just above the $60 mark – how long do you think it will be before that has completely feed through and inflation will start to ease.

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Now that oil seems to be / has been staying just above the $60 mark – how long do you think it will be before that has completely feed through and inflation will start to ease.

Even at $50 bbl its high in historic terms. Oil is just one factor--it seems everything is moving at a rapid pace including Council Tax, gas, electricity, coal, travel . . . . .

Not wages it seems:

http://www.personneltoday.com/Articles/200...+since+2003.htm

Pay increases lowest since 2003

28 February 2006 11:15

Edited by Realistbear

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Now that oil seems to be / has been staying just above the $60 mark – how long do you think it will be before that has completely feed through and inflation will start to ease.

I actually think that it's only now that one year's higher enery prices are beginning to feed through.

Powergen

A company spokesman, Nick Horler, said: "We shielded our customers from the impact of these costs for as long as possible."
]

Last Autumn everyone including suppliers expected (hoped) energy prices would correct - they didn't. The suppliers had hedged their prices through to March. Now those hedges have expired and the users are being hit. This is where the fun starts.

Edited by Sisyphus

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I actually think that it's only now that one year's higher enery prices are beginning to feed through.

I'd agree, and it wont just be utility firms which have waited before passing on the increases to customers, it'll be all sorts of energy consuming firms who've so far absorbed these increases, but surely soon, will have to pass the higher costs onto customers.

Al Quada seems to have caught onto the fact that by disrupting oil production, Western economies could be seriously hit. If I was them I'd be planning massive attacks on oil production facilies, pipelines. I know this is already happening to an extent (Nigeria mainly), but so far on a fairly small scale.

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  • 301 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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