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Inflation Leaps: Cpi 2.5%/rpi 3.3%

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The Chancellor of the Exchequer is pleased to announce that the CPI rate is within the revised target of 2.5%!

BBC are being slow to put this news up, usually the report is up in a minute or two - theyve probably had to bin their pre-written article, and are busy phoning No10/Treasury for an 'angle'

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How the f++k can they now pretend interest rates should stay where they are?

With CPI 2.5% & RPI 3.3% if BoE dont hike IRs at August meeting they will be the laughing stock of the central banking world

Looks like Browns dove cavalry might arrive at the party too late to stop IR rises - Browns 2 new members dont join the committee/vote till September

If BoE put off a decision till then, the blatant rigging of BoE will be exposed for all to see, as inflation spirals towards 3%

Then Brown will have to move the Inflation Target to keep IRs down, a move that would destroy his reputation forever

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Give the BOE two targets, not exactly difficult having two main objectives - one CPI and the other financial stability. Well financial stability was out of the window long ago, they ignored that one as most of the public are clueless as to its existence. So they concentrate on one, even that one they can't hit. :lol:

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How the f++k can they now pretend interest rates should stay where they are?

In fact the market and the MPC have been indicating an increase in August and probably November too.

Who is it that has been suggesting no change? VIs of course.

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In fact the market and the MPC have been indicating an increase in August and probably November too.

Who is it that has been suggesting no change? VIs of course.

Actually, I rather hope BoE sit on their hand longer, then the doves will come in and vote for a cut. Inflation will then spiral, Brown will of course find an excuse to move adjust the target, to prevent IR rises, till it all gets too much and they have to hike them not by .25%, but by 2.0% in one go, bringing the whole HPI/MEW party to a nasty end

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The Chancellor of the Exchequer is pleased to announce that the CPI rate is within the revised target of 2.5%!

Oops. How can they possibly justify not raising interest rates now? 0.5% over target and rising seems pretty bad to me If we connect the dots of the last couple of months you get to 3% by next month, which sounds about right.

But 2.5% is still within the 1% margin either side of the target which is allowed apparently so they could still justify not raising it if their was evidence enough to prove this isn't an on going trend. They will definitely have something to worry about in July if you ask me.

This is apparently the highest it has ever been, last equalled in sept 2005.

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CPI annual inflation – the Government's target measure – rose to 2.5 per cent in June up from 2.2 per cent in May. It has not been higher since the start of the official series in 1997, and has only been equalled once before, in September 2005.

The largest upward effect came from gas and electricity bills which continued to increase by more than a year ago, reflecting the phasing in of recent tariff increases from major suppliers.

True

There were also large upward effects from:

• food and non-alcoholic beverages, mainly due to vegetable prices, and to a lesser extent fish prices, both of which increased this year but fell a year ago. A partially offsetting downward contribution came from fruit where prices rose by less than last year;

B*LLOCKS

• tobacco, due to the price of cigarettes increasing this year on all brands, on average by 6p for a packet of 20. Last year, prices were little changed; and

B*LLOCKS

• furniture and furnishings with prices rising by more than a year ago. The main upward effects came from lounge furniture and kitchen cabinets.

B*LLOCKS

RPI inflation rose in June to 3.3 per cent up from 3.0 per cent in May. The main factors influencing it were similar to those affecting the CPI.

RPIX inflation – the all items RPI excluding mortgage interest payments – is 3.1 per cent in June, up from 2.9 per cent in May.

As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate is slightly below the average for the European Union as a whole. The provisional inflation rate for the EU 25 in June was 2.4 per cent, compared with the UK figure for the same month of 2.5 per cent.

Edited by The Colour

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BBC are being slow to put this news up, usually the report is up in a minute or two - theyve probably had to bin their pre-written article, and are busy phoning No10/Treasury for an 'angle'

Its on their Latest news line, but there is no article behind it at the moment.

Interestingly, skynews reports it as expected to be at 2.3%

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With the sky high crude oil prices at the moment, there is more follow through to come.

The inflation cycle is only going to get worse from here on. What we are seeing now was sown 12 months ago as input prices began to take off. Companies can only absorb costs for so long before they HAVE to pass them on or go bust. It's a very laggy process, but it's happening now. £1/ltr petrol is really going to ram the point home.

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The clowns setting interest rates are now in danger of having a run on the pound 1992 style.How can they have allowed inflation to have got so out of hand and allowed and allowed such large asset bubbles to form. Chimps drawing straws to determine policy would have done a better job. sack the f***ing lot of them.

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Its on their Latest news line, but there is no article behind it at the moment.

Interestingly, skynews reports it as expected to be at 2.3%

They've put up an inetrim story - though not positioned as main item Fuel costs push inflation to 2.5%

Rising energy bills continued to push drive UK inflation above government targets of 2% in June, the Office for National Statistics (ONS) has said.

Consumer Price Index inflation rose to to 2.5% from 2.2% in May, its highest level since September 2005.

Rising food, furniture and tobacco costs also contributed to the increase, the ONS said.

The headline rate of RPI inflation, which includes mortgage interest payments, rose from 3% to 3.3%.

More [spin due] soon.

"More soon" - where is that No10/Treasury email?

Edited by jp1

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Notice BBC angle; Fuel costs push up prices

Infact most things pushed up inflation

The BBC spin points to the 'blame' being conveniently put on oil prices - something beyond even our great chancellor's control.

However, Brown could try to use this "international oil factor" to raise the BoE Inflation Target, to bring us in line with the "new global inflation climate"

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Notice BBC angle; Fuel costs push up prices

Infact most things pushed up inflation

The BBC spin points to the 'blame' being conveniently put on oil prices - something beyond even our great chancellor's control.

However, Brown could try to use this "international oil factor" to raise the BoE Inflation Target, to bring us in line with the "new global inflation climate"

TB and GB are pushing hard for a ME settlement. Its a done deal Isreal beating the Hezbollah and I doubt Syria or Iran have the stomach for war--at least not with TB and GB ready make them glow in the dark for a few centuries. Once that is on oil prices will miraculously plummet back to $70 bbl which means the source of inflation has been tamed and no need to kill off HPI-MEW with higher rates. If the currency markets rumble this I would expect to see a run on sterling.

I am afraid IR will rise over GB's dead body. Or after he has ascneded to No. 10 and I doubt the latter is ever going to happen.

Bloomberg have already twigged it:

``Inflation is certainly higher than the Bank of England was expecting,'' James Knightley, an economist at ING Bank NV in London, said in an interview. ``
It's all down to energy at the moment
. There's risk of a rate hike later this year, probably in November.'
'

GB can also say there is nothing but a "risk" that there is inflation as oil prices will come down once Hezbollah are sorted.

Edited by Realistbear

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Oh boy, this is the start of the end - those energy prices are NOT going to come down - this is PERMENANT and GLOBAL

Global IR rises are on the way.....

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Check out sterling. Rapid run up and now its going back down. Currency markets may be pricing in more innaction by Brown. They know he is adept at manipulating data and higher IR will be the end of his career.

Stocks started to crash and have levelled suddenly--more evidence that the market sees inaction by GB?

IMO, Brown will resist hiking until the CPI is above 2.5% for at least 3 months in a row. He has too many outs at the moment including energy price softening should the ME thingy go away.

Edited by Realistbear

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Expect soon an inane BBC 'Have your say'

"Inflation: Do prices affect you?", which they can then moderate to only publish 'positive' comments

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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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