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gruffydd

Shop Prices Jump!

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THey'll hold this month - if they hold next month, I think it'll be time to leave and run my business from elsewhere - my confidence in UK plc will have been totally trashed.....

G

http://today.reuters.co.uk/news/newsarticl...xml&src=rss

Shop prices jump ahead of Bank decision

Wed Aug 2, 2006 11:39 AM BST

Email This Article | Print This Article | RSS [-] Text [+]

LONDON (Reuters) - Shop prices rose at their fastest rate in two years in July, a survey showed on Wednesday in another sign of growing inflationary pressure as the Bank of England's Monetary Policy Committee starts its two-day meeting.

The British Retail Consortium said shop prices last month rose 0.69 percent on the year, the biggest jump since July 2004 and suggesting CPI inflation -- already half a point above the central bank's 2.0 percent target -- could rise further still.

Most economists expect the BoE's rate-setting committee to keep interest rates at 4.5 percent for the 12th month running on Thursday, but the risk of a hike clearly is greater than any time in the last 12 months.

Edited by gruffydd

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THey'll hold this month - if they hold next month, I think it'll be time to leave and run my business from elsewhere - my confidence in UK plc will have been totally trashed.....

G

Thats inflation at nearly 9% per annum. The poor wheat harvest caused by too high temperatures, the rising commodity prices, the still high oil and gas prices - inflations only going one way.

This would suggest interest rates of 11% required to dampen down on these prices rises and maintain price stability :ph34r:

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Guest Alright Jack

Thats inflation at nearly 9% per annum. The poor wheat harvest caused by too high temperatures, the rising commodity prices, the still high oil and gas prices - inflations only going one way.

This would suggest interest rates of 11% required to dampen down on these prices rises and maintain price stability :ph34r:

11% :lol::lol:

the currency would collapse overnight!

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IF CPI is really only 2.5% and many of the items in the 'basket' are running at much higher than that, presumably some items are decreasing in price to produce the overall figure (or are the heavily weighted items in the basket just stagnating?) Can someone shed some light?

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IF CPI is really only 2.5% and many of the items in the 'basket' are running at much higher than that, presumably some items are decreasing in price to produce the overall figure (or are the heavily weighted items in the basket just stagnating?) Can someone shed some light?

Remember if a PC comes out that is 10% more powerful than the previous top end, but is the same cost. Then PCs are dropping by 10% in

the basket. Flippin cheating if you ask me!

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IF CPI is really only 2.5% and many of the items in the 'basket' are running at much higher than that, presumably some items are decreasing in price to produce the overall figure (or are the heavily weighted items in the basket just stagnating?) Can someone shed some light?

All you need to know is that it's 'fiddled' to keep it low and stop IR rising which might crash the housing market

Here's a except of a Wikipedia definition that points to where GB/BOE may be taking us (rather than raise IR)...

http://en.wikipedia.org/wiki/Hyperinflatio...nd_the_currency

"Governments will often try to disguise the true rate of inflation through a variety of techniques. These can include the following:

- Outright lying as to official statistics such as money supply, inflation or reserves.

- Suppression of publication of money supply statistics, or inflation indices.

- Price and wage controls.

- Forced savings schemes, designed to suck up excess liquidity. These savings schemes may be described as pensions schemes, emergency funds, war funds, or similar.

- Adjusting the components of the Consumer Price Index, to remove those items whose prices are rising the fastest."

Edited by dnd

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Is there no-one out there who is able to get a handle on what they are doing and write an effective critique of the CPI calculations?

The only outlet is the media - they are vested interests - plus the fact that the masses might not grasp the complex concept 'inflation' as effectively as a single figure like interest rates - it's too subtle - that's why GB/BOE are pursuing higher inflation - it's easier to hide

If they rose IR - EVERYBODY would take notice - meanwhile REAL inflation has reached 10+% without a big fuss - people are simply borrowing to bridge the gap between their virtually static wages and rising prices - without even realising it

Until the press makes the public more aware of inflation - IR won't move....

Edited by dnd

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So surely what we need is for the hedonics to apply equally to other items.

So the crap cloths that fall apart after a few washes, compared to the good old fashioned kit that is still going strong 50 years later. The dodgy whitegoods that fail a month after their 1 year warranty. Crap chickens that taste nowt like they used to. The BBC. All these things have lower quality. So surely the hedonics should take that into consideration?

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So surely what we need is for the hedonics to apply equally to other items.

So the crap cloths that fall apart after a few washes, compared to the good old fashioned kit that is still going strong 50 years later. The dodgy whitegoods that fail a month after their 1 year warranty. Crap chickens that taste nowt like they used to. The BBC. All these things have lower quality. So surely the hedonics should take that into consideration?

You should appear on the next series of Grumpy Old Men... :lol:

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Guest grumpy-old-man

You should appear on the next series of Grumpy Old Men... :lol:

if you think RichB's a bit of a moaner, you should spend a few hours with me.........you would be looking for a noose :o;)

RichB - spot on with your statement......the thing is we have passed the point of no return & it's gonna get a sh1t load worse in the next 10 years.

Edited by grumpy-old-man

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if you think RichB's a bit of a moaner, you should spend a few hours with me.........you would be looking for a noose :o;)

Wouldn't expect anything less from a Yorkshireman... ;)

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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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