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Realistbear

C P I Date Released In Ez: 3.3%

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http://www.iht.com/articles/2008/03/14/bus.../14eueconFW.php

DUBLIN: European consumer prices and wages rose in February more than economists forecast, leaving the European Central Bank with little room to lower interest rates as economic growth slows.
Consumer-price inflation in the euro zone accelerated to
3.3 percent in February
, the European Union statistics office said Friday. That is faster than a Feb. 29 estimate and the median forecast in Bloomberg News survey of economists. Labor-cost growth quickened in the fourth quarter to the highest since 2006, a separate report showed.

Should boost the Euro. No wonder sterling is down below 1.30 and the US$ nearing 1.60. Trichet says he targets one thing, and one thing only: inflation. This means a sries of hikes beginning with the next meeting.

Ireland, Spain, Italy, Greece, France, RIP.

I wonder how Broon manages to keep our CPI at 2.1% when we have the same increases as the EZ in just about everything from fuel to wheat? A miracle perhaps? <_<

Edited by Realistbear

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E C B to begin a series of hikes?

It would be nice, but probably not.

Does Trichet have a choice? His remit is to target inflation and its raging. It will devastate France and the Meditteranean economies but Germany can take another 1% or so on the CB rate. Nothing like a bit of fiscal discipline to restore confidence in the long term. The air has to be let out of the housing bubbles in any event so why risk hyperinflation trying to protect them?

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I wonder how Broon manages to keep our CPI at 2.1% when we have the same increases as the EZ in just about everything from fuel to wheat? A miracle perhaps? <_<

they have 3.3% in spite of a rising currency?

might be why they are not cutting.

if they did that 3.3% figure might be a LOT bigger

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It really gets up my nose the way journalists report raging inflation with the conclusion that this means rates will not be cut as much or as fast as the CB would like. Get a grip - raging inflation should mean rates going up to protect the value of peoples savings and the currency.

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Raging inflation at 3.3% :rolleyes:

More spin by the media and VI's. Raging inflation was 20 odd years ago when it was around 10%. It's terribly low at the moment......only surprise for me is that it stayed there so long. (probably thanks to China and globalisatio) :ph34r:

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Raging inflation at 3.3% :rolleyes:

More spin by the media and VI's. Raging inflation was 20 odd years ago when it was around 10%. It's terribly low at the moment......only surprise for me is that it stayed there so long. (probably thanks to China and globalisatio) :ph34r:

Don't forget the CPI rate is not the real rate of inflation. Given the rises in fuel, food, transport, gas & electricity the actual rate of inflation is probably somewhere north of 7%.

Even if you take the CPI the rate is more than 50% above target which is pretty serious.

With Oil at around $111 is is so obvious that the entire world's economy would go into an inflationary spiral---just before it all breaks down and we get years of deflation.

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Don't forget the CPI rate is not the real rate of inflation. Given the rises in fuel, food, transport, gas & electricity the actual rate of inflation is probably somewhere north of 7%.

Even if you take the CPI the rate is more than 50% above target which is pretty serious.

With Oil at around $111 is is so obvious that the entire world's economy would go into an inflationary spiral---just before it all breaks down and we get years of deflation.

Agree RB. Here in France, most people assume inflation is 5-6% or more, in spite of official figures. It's got to such a farcical state that even the newsreaders give a big , jokey smile when they read the figure out every month.......

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  • 295 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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