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Inflation Rates

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Inflation rate is personal - but a recent BBC poll said that 31% said this country is too expensive

http://news.bbc.co.uk/1/hi/uk/5310016.stm

However a lot of people still haven't made that leap to being aware of real inflation increasing prices and the supressing of their wages through immigration

People's borrowing/spending behaviour is being 'supressed' from both angles...

Edited by dnd

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All figures are damned lies.

The rate of increase of M4 in the UK has been about 12% in recent years and hit 13.1% recently. Most of the money doesn't go into consumer goods but into assets such as housing.

This is why inflation of house prices has seen a doubling in the last five years, why the dot com bubble has re-inflated etc.

Now they're trying to talk up consumer prices. Recent media articles claim that an early summer heat wave has REDUCED crops. In recent years, Tescos and Sainsbury's have reported deflation in the price of food of about 2%.

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The website inflationdata.com gives the estimated figures for the USA but again the numbers are not taking account of the effect of money inflation. Both the US and UK govenrments have used steroids to offset recession and we all know how that will end. It's a shame that most people don't realise just how damaging this policy will be to the youth of today. It seems like robbing peter to pay granny.

Edited by bpw

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I think you miss the point of CPI somewhat. It's a meaningful measure of how the business economy is doing, ie weighted to the non public sector and a good indicator for the purpose of interest rate decisions. If mortgage payments were included there would be an arguement to raise rates in inflationary periods when actual consumer spending was flat, harming business

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I think you miss the point of CPI somewhat. It's a meaningful measure of how the business economy is doing, ie weighted to the non public sector and a good indicator for the purpose of interest rate decisions. If mortgage payments were included there would be an arguement to raise rates in inflationary periods when actual consumer spending was flat, harming business

Oh dear.

The economy isn't just about consumer spending you know! Infact, I would say the current measure of inflation is wrong for the economy as it is biast towards consumerism and not the whole economy (as it should be).

Pay deals and pensions are usually based on RPIX, but even the RPI doesn't measure the cost of living (the government just said so). This means the real cost of things, e.g. council tax, will rise far above pay deals. This is exactly what we have seen in recent years, but because interest rates are low people have taken on debt to keep up their living standards. This doesn't so much for financial stability.

Basically, the current monetary policy has been encouraging debt. This will eventually lead to a bust, as the economy and the population rely are more and more debt.

This doesn't mean I think inflation targetting won't work, it will, but they need to target the right inflation. This CPI inflation targetting is just a 'fad', and it will be no longer targetted in a decade or so.

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This CPI inflation targetting is just a 'fad', and it will be no longer targetted in a decade or so.

CPI inflation targeting was put in place to keep IR low to maintain HPI

HPI wins elections

Simple as that...

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The website inflationdata.com gives the estimated figures for the USA but again the numbers are not taking account of the effect of money inflation. Both the US and UK govenrments have used steroids to offset recession and we all know how that will end. It's a shame that most people don't realise just how damaging this policy will be to the youth of today. It seems like robbing peter to pay granny.

Not just youth of today. Everyone that aint rich is being affected and the worst is yet to come, were giving granny (the other halfs mum) cash so she can cover the real cost of living, the pension doesnt . Our savings have devalued by half due to HPI and now CPI inflation is biting our savings from the other end, no pay rises and inflation much higher than so called quoted CPI rates. The poorer you are the more inflation you have, cause thats where prices are going up, council tax, transport, electricity and gas, food also is starting to go up. A rich man however is doing well, cars are better and cheaper than they were, the property and art portfolio has doubled in price, hey they can have 42in plasmas in the toilet now theyre so cheap. As for pay rises, they gave them up when the EE's started ariving.

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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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