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Public’s View Of Inflation Poses Threat For Rates

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http://business.timesonline.co.uk/article/...2093829,00.html

The Times March 20, 2006

Public’s view of inflation poses threat for rates

By Gary Duncan, Economics Editor

PROSPECTS for a further cut in interest rates will be dealt another blow this morning by news that the public’s assessment of existing inflation in the economy and its likely future level has leapt upwards since November.
The Bank of England’s regular quarterly survey of attitudes to inflation across Britain, released this morning, reveals that Britons believe that price pressures are running at levels much higher than the reality, and that this trend will persist over the coming year. The findings of the Bank’s poll by NOP will inflame anxieties on its Monetary Policy Committee (MPC) that the surge in the cost of oil and gas has triggered an excessive view of inflation among the public.
Today’s poll shows that, asked about the present rate of inflation on the consumer price index (CPI), the average figure given by those questioned was 2.7 per cent.
This is the highest result in the six-year history of the NOP survey and far higher than the true figure of just 1.9 per cent in January — a level expected to be unchanged in the latest data tomorrow
.

The Sheeple may be turning into Foxles?

You can lie to the public for only so long.

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Britons believe that price pressures are running at levels much higher than the reality

thats because they are.

every bill thats arrived for 06 is above the governments inflation figure.

name something thats only gone up to the official inflation figure ?

wages.

i hate to see new lab break apart like this. the first 4 years were excellent.

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So the BOE is saying in very a diplomatic way that it considers official government inflation figures to be total b******s. About time.

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I just got my paper bill (printing paper) and that has shot up, my council tax bill has gone up 5%, absolutely everything is going up - how the hell has inflation gone down.

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far higher than the true figure of just 1.9 per cent

Nobody belives it any more, rightly so.

I look at cheap products down the isles nowadays and a good proportion of them can only be described as total rubbish. Badly manufactured, badly designed (cheap rip-ofss a lot of them) and with a potential lifespan of months rather than years for many.

Meanwhile the cost of living is leaping, making those who compile the stats and those who base policy on them look stupid / complicit in the great con.

Edited by OnlyMe

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I like the way they claim that the public think 'inflation is increasing faster than reality'. In reality, it's the inflation figures that are utterly wrong, not the public's belief: after all 'the public' has to pay for all those things that are massively increasing in price.

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The sad thing is all the important things in our lives have shot up by a LOT.

I went shopping the other day, bought 2 pairs of kids shoes for 25 quid (Nike and Addidas),

looked in dixons to see PS2 games for 4.97 and even some for 2.98.

Its those things which scew the inflation figures.

I dont want cheap PS2 games, i want cheap council tax (or none), lower utility bills, lower childminding costs.

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The sad thing is all the important things in our lives have shot up by a LOT.

I went shopping the other day, bought 2 pairs of kids shoes for 25 quid (Nike and Addidas),

looked in dixons to see PS2 games for 4.97 and even some for 2.98.

Its those things which scew the inflation figures.

I dont want cheap PS2 games, i want cheap council tax (or none), lower utility bills, lower childminding costs.

If the government ignored all the imported toys and discretionary items and included the things we had no choice but to pay for the inflation figures would make the government look bad. Its how governments like NuLabour get people to believe they have created an "Economic Miracle."

Another example of the government's less than 2% inflation that everyone has to pay:

http://www.thisismoney.co.uk/news/article...._page_id=2&ct=5

£32 licence rise for digital TV
Jon Rees, Mail on Sunday
19 March 2006
VIEWERS face paying an extra £32 on top of expected increases in the £126.50 colour TV licence fee if the BBC is forced to fund the £800m cost of providing elderly and vulnerable homeowners with digital television.

Let's see, 126.50 plus 1.9% would be 128.90.

Real inflation on this broadly used item is around 25%.

Edited by Realistbear

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Minimum wage to rise in October

Low paid workers will now earn at least £5.35 an hour

The national minimum wage is to rise by 30p - nearly 6% - from £5.05 to £5.35 an hour from October 2006.

http://news.bbc.co.uk/1/hi/business/4824544.stm

3 X the "rate of inflation."

Admitting that the official figures are pure nonsense?

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Real inflation on this broadly used item is around 25%.

Ah, but by my calculations digital is 50% better, so that's actually a 25% drop.

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Anyone got any contacts in TV?

I reckon this article in the Times coupled with growing public perception that inflation figures are a massive scam would form the basis for a good TV documentary.

Lets do everything we can to get the truth out!

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OK let's assume I own my home, never go shopping, except for the most basic food and clothes.

I earn a salary and pay all my taxes rates and heating bills and transport. I spend my evenings chatting to friends or reading library books.

How much has my cost of living changed over the past 20 years?

I guess that most here would agree that it would be way higher than official CPI or even RPI.

My point being that real cost of living ie the cost of just getting by is totally unrepresented by any inflation marker.

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i hate to see new lab break apart like this. the first 4 years were excellent.

Is that some of your usual humour Fred??

What Nu Labour are now reaping is a direct result of ALL of their years in government (including the first 4 years).... its just that many people didn't notice their lies and spin until they'd failed to delivery for so long.

IMHO Nu Labour have never been any different than they are now... its just taken this long for most people to notice.

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I just got my paper bill (printing paper) and that has shot up, my council tax bill has gone up 5%, absolutely everything is going up - how the hell has inflation gone down.

I have just got an increase for paper 8% increase. It's ok though, treasury tags have gone down in price!

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I just read this article and I think this is a classic example of how screwed up things are.

The public haven't gone an mis-judged inflation - except if anything by considering the 2.7% to be 'low'.

It's CPI that's completely unrepresentative of the real world and we all know it.

- Pye

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  • 302 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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