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tinecu

Ppi Surges To 22-year High

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http://www.forbes.com/markets/feeds/afx/20...afx4751123.html

LONDON (Thomson Financial) - The pound firmed in the wake of data that showed producers' input prices hit a new record in February.

Input prices jumped by 1.7 pct in February from January, bringing the annual rate to 19.3 pct -- the largest annual increase since records began in 1986.

Meanwhile, output prices -- which are monitored by the Bank of England as a signal of pipeline inflation -- rose a monthly 0.3 pct following January's 1.0 pct increase, keeping the annual rate at 5.7 pct -- its highest since July 1991.

'Sterling/dollar has run-up to an intra-day peak of 2.0212 usd since the disclosure that annualised UK producer price input inflation rose to a 22-year high,' said Robert Howard at Thomson's IFR

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No deflation yet then.... ;)

IR cut less likely...

Edited by tinecu

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My ignorant-as-the-next-guy take on the debt markets is signalling a midyear raise. How about a nice cup of 0.15% BOE hike around June-ish?

Edited by ParticleMan

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I can never get over the way VIs and politicians have used the "low inflation, low interest rate, low unemployment" mantra over the last few years, like it's some kind of permanent economic climate. And people just accepted it!

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I can never get over the way VIs and politicians have used the "low inflation, low interest rate, low unemployment" mantra over the last few years, like it's some kind of permanent economic climate. And people just accepted it!

Indeed....but only food, goods, water, energy and shelter are going up above the CPI rate... :lol:

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I can never get over the way VIs and politicians have used the "low inflation, low interest rate, low unemployment" mantra over the last few years, like it's some kind of permanent economic climate. And people just accepted it!

Well why not, when you've run through your own savings, you may as well burn through those of your neighbours, too (if they're mad enough to lend them to you in the first place that is). A global game of beggar your neighbour, if you will, where the debtor nations are cheating by printing new cards for their deck as the game progresses.

It does however mean that the scarcity value (ie, purchasing power) of any unleveraged capital (or unleveraged, yield-positive assets for that matter) left in the system is climbing by the day. Not such a bad thing, for those playing the long game (ie, those who will have savings left to buy when utility value exceeds quoted price).

Edited by ParticleMan

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http://www.forbes.com/markets/feeds/afx/20...afx4751123.html

LONDON (Thomson Financial) - The pound firmed in the wake of data that showed producers' input prices hit a new record in February.

Input prices jumped by 1.7 pct in February from January, bringing the annual rate to 19.3 pct -- the largest annual increase since records began in 1986.

Meanwhile, output prices -- which are monitored by the Bank of England as a signal of pipeline inflation -- rose a monthly 0.3 pct following January's 1.0 pct increase, keeping the annual rate at 5.7 pct -- its highest since July 1991.

'Sterling/dollar has run-up to an intra-day peak of 2.0212 usd since the disclosure that annualised UK producer price input inflation rose to a 22-year high,' said Robert Howard at Thomson's IFR

------

No deflation yet then.... ;)

IR cut less likely...

Total madness. It's crazy you know. Be the death of this country.

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  • 293 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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