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Uk Inflation Slows Unexpectedly

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http://news.bbc.co.uk/1/hi/business/4925662.stm

UK inflation slows unexpectedly

Milk and diary goods have seen a drop in prices

UK inflation rose less than expected in March, after a dip in milk and dairy goods prices and a fall in the cost of air fares, official data has shown.

The Consumer Price Index (CPI), the official inflation rate, rose 1.8% last month, down from February's 2% growth.

This puts inflation at its slowest pace in more than a year, and below the Bank of England's 2% target.

The rate of headline RPI - which includes mortgage interest payments - remained unchanged at 2.4%.

...

whoops.... :rolleyes:

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That makes such a difference, considering about 0.1% of my income goes on dairy products and 1% on air fares.

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That makes such a difference, considering about 0.1% of my income goes on dairy products and 1% on air fares.

Just what I was thinking.

My petrol per month is costing me well over £200 :angry:

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what a load of manipulated shiite!!

How on earth can it fall when oil is shooting past $73 and house prices are still reported to be increasing and every thing in the UK has basically had about 5% and 10% added to it in the last 6 months.

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but surely it is the cumulative effect of inflation as a whole (and the impetus that that could give to the BoE) that is important.

I barely put 40 quids worth of petrol in my car a month, does that mean that I should not be concerned about the wider structural effects of oil and its price?

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but surely it is the cumulative effect of inflation as a whole (and the impetus that that could give to the BoE) that is important.

I barely put 40 quids worth of petrol in my car a month, does that mean that I should not be concerned about the wider structural effects of oil and its price?

Do you buy 40 quids worth of cheese and milk? I doubt it, so why are dairy products off-setting oil? I can't get my head around the CPI basket.

Edited by OzzMosiz

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what a load of manipulated shiite!!

How on earth can it fall when oil is shooting past $73 and house prices are still reported to be increasing and every thing in the UK has basically had about 5% and 10% added to it in the last 6 months.

Because Gordon Brown has fiddled the figures 'unexpectedly'?

However much they try, or even succeed in manipulating the BoE to cut rates, I still believe the markets will ultimately be the undoing of all this.

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That makes such a difference, considering about 0.1% of my income goes on dairy products and 1% on air fares.

Absolutely right.

Seeing as the CPI is basically a Woolworths (pic n' mix) fantasy, can I choose to cull things off my inflationary plate?

1. Gas bill

2. council tax

3. petrol

4. labour

Still, as long as plastic crap from the far east and Tesco value stuff is coming down, that's alright <_<

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Do you buy 40 quids worth of cheese and milk?

You do if you live in Wallace & Gromitt-land. Or Gordon's Miracle Economy

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Its food that has come down more than last year, which is why the index has fallen

The largest downward effect on the CPI annual rate came from food and non-alcoholic beverages due to a number of contributions:

• Milk, cheese and eggs, where cuts in milk prices led to a fall in the recorded average price of around 2p per pint in March;

• Vegetables, with good supplies leading to price falls for some produce, (including cauliflowers, cucumbers and lettuces) compared with increases last year; and

• Meat, (where prices fell this year) compared with little change a year ago.

But of course, everyone here doesn't eat, and drives large 4X4.

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what a load of manipulated shiite!!

How on earth can it fall when oil is shooting past $73 and house prices are still reported to be increasing and every thing in the UK has basically had about 5% and 10% added to it in the last 6 months.

Well, oil isn't in the index, because not very many consumers buy oil. Petrol is, but petrol prices went up most last year, and are static at the moment according to the data. Lots of products use oil in their manufacture, but it seems prices haven't been rising for them, possibly due to the high level of competition.

House prices aren't in the index, and nor are mortgage payments. There is an argument about whether they should be, with good points on both sides, but as it stands that's the case.

There are serious issues with the way inflation is calculated, especially with things like geometric weightings and hedonic adjustments. But knee-jerk reactions like this to numbers that don't fit your world view are counterproductive. Why do you think you have a better view of the world than the statisticians, and isn't that just as bad as bulls taking a blinkered view of the data?

In any case, this is monthly data, so is expected to be volatile. The Bank won't pay too much attention to any one month's data when setting rates, so don't get too worked up about it.

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Well, oil isn't in the index, because not very many consumers buy oil. Petrol is, but petrol prices went up most last year, and are static at the moment according to the data.

I drove from Huddersfield to Swindon on the weekend. I didn't see ANYWHERE selling petrol at 89.9p any more. They were a week or so ago. Cheapest I saw was 94.9p

Thats a 5.5% increase in petrol in a week.

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I drove from Huddersfield to Swindon on the weekend. I didn't see ANYWHERE selling petrol at 89.9p any more. They were a week or so ago. Cheapest I saw was 94.9p

Thats a 5.5% increase in petrol in a week.

CPI Figures are for March not April.

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So milk falls by 2p a pint and air fares fall, so what my gas bill and fueul bill shot up and the cost of my other shopping is going up too.

Are the Fuel surchanges charged by airlines included in the CPI data?

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I drove from Huddersfield to Swindon on the weekend. I didn't see ANYWHERE selling petrol at 89.9p any more. They were a week or so ago. Cheapest I saw was 94.9p

Thats a 5.5% increase in petrol in a week.

Correct. Cars are a necessity but buying clothes and gadgets are not. So is it any wonder that we are in a retail recession?

That's 5.5% less to spend - period. Which in turn reduces GDP and then recession :P

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I drove from Huddersfield to Swindon on the weekend. I didn't see ANYWHERE selling petrol at 89.9p any more. They were a week or so ago. Cheapest I saw was 94.9p

Thats a 5.5% increase in petrol in a week.

The BP in Cirencester I drive past on the way to work has diesel at 100.9 :o

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Petrol is, but petrol prices went up most last year, and are static at the moment according to the data.

And are up 5p a litre in the last month, according to reality.

It'll be fun watching Brown talk about his miracle economy before the election with petrol over a pound a litre. I guess maybe Blair could try to talk Bush out of making any more stupid comments about Iran, but that seems unlikely.

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Petrol prices go up and down at the drop of a hat, I dont think they have as much to do with inflation as you think. Lets look for the long term trend.

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Lets look for the long term trend.

Up, until interest rates rise enough to push the world into a well-deserved recession.

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Petrol prices go up and down at the drop of a hat, I dont think they have as much to do with inflation as you think. Lets look for the long term trend.

Er, the long term trend is up for Gawd's sake.

I started drving in October '96 with petrol @ 57.9

March '06 @ 93.9

That's 62% over 9 and a half years - 6.5% pa.

I should do the same for council tax....

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Petrol prices go up and down at the drop of a hat, I dont think they have as much to do with inflation as you think. Lets look for the long term trend.

And you have to remember that last August prices were the approx the same. So if oil stays the same now until August , the YoY inflation due to petrol will then be 0.0%

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Do you buy 40 quids worth of cheese and milk? I doubt it......

Most families with children will easily spend £40 a month on milk / cheese.

We spend about £20 a week.

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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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