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Realistbear

C P I On Track At 2%

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http://uk.biz.yahoo.com//16052006/94/energ...boe-target.html

Tuesday May 16, 11:23 AM

Energy costs push inflation up to BoE target
Soaring air fares and higher energy bills helped push inflation back in line
with the Bank of England’s target, according to official figures released on Tuesday.
The Office for National Statistics said the consumer price index for the year to April rose, as expected, by 2 per cent, up from the 1.8 per cent recorded in March.
Between March and April, prices climbed by 0.6 per cent.
Though the month-on-month increase was the sharpest in 5 years, like the annual figure it was in line with forecasts and markets were little changed on the news.

:blink:

Edited by Realistbear

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http://uk.biz.yahoo.com//16052006/94/energ...boe-target.html

Tuesday May 16, 11:23 AM

Energy costs push inflation up to BoE target
Soaring air fares and higher energy bills helped push inflation back in line
with the Bank of England’s target, according to official figures released on Tuesday.
The Office for National Statistics said the consumer price index for the year to April rose, as expected, by 2 per cent, up from the 1.8 per cent recorded in March.
Between March and April, prices climbed by 0.6 per cent.
Though the month-on-month increase was the sharpest in 5 years, like the annual figure it was in line with forecasts and markets were little changed on the news.

:blink:

Seems to suggest that without "soaring air fares and higher energy bills" we would be in deflation!

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http://uk.biz.yahoo.com//16052006/94/energ...boe-target.html

Tuesday May 16, 11:23 AM

Energy costs push inflation up to BoE target
Soaring air fares and higher energy bills helped push inflation back in line
with the Bank of England’s target, according to official figures released on Tuesday.

:blink:

That's funny, wasn't it falling air fares (along with dairy) which brought the CPI down last month?

Peter.

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It has been suggested that the rise in CPI was due to the date Easter fell this year, meaning air fares increased around this time. So not only do we have inflation controlled by the produce of cheap tat DVD players and economy tins of baked beans, we're also subject to the crucifixion of Christ. Hmm. <_<

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Real PI is, according to the government, 2.4% because it takes into account rising mortgage rates:

http://uk.biz.yahoo.com/16052006/140/analy...tion-rates.html

Tuesday May 16, 10:55 AM

Analysts Surprised By Inflation Rates

The annual rate of inflation has risen to 2% in April from 1.8% in March, official figures have shown. That was higher than economists had expected - they predicted a 0.1% rise to 1.9%. The rise has been put down increasing energy costs which have put huge pressure on costs for both businesses and consumers.
The underlying rate of Retail Price Index inflation rose from 2.1% to 2.4% last month, the Office for National Statistics said.
The RPI includes mortgages in its calculations.
The update comes just days after the Bank of England indicated it may have to raise interest rates to stop inflation rising above 2%.
The Bank (NASDAQ: TBHS - news) 's Monetary Policy Committee sets interest rates every month in order to keep inflation at 2% over a two-year period.

I wonder what the ARI is? (Actual rate of inflation: factoring in non-discretionaries such as housing, fuel, council tax, fares, TV licenses etc.)

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I wonder what the ARI is? (Actual rate of inflation: factoring in non-discretionaries such as housing, fuel, council tax, fares, TV licenses etc.)

Well, for the last three years my partner and I have had to pay, on average, 13.1% more into our housekeeping account each year than the year before to cover the cost of food, gas, electricity, water, council tax, phone bills and TV license. We've also downgraded from branded goods to supermarkets' own stuff and reduced energy consumption too, so I suspect the true figure is a little higher than 13.1%.

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"Partially offsetting this, a large downward effect came from bus travel with average fares falling following the introduction this April of free off-peak local bus travel in England for people aged 60 and over and for disabled people. "

F*** me, no wonder people think the CPI is government biased. Imagine what the result would have been otherwise. :lol::lol::lol:

These figures may be a blip, but I think that they may be enough to persuade the MPC to raise rates at the next meeting.

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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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