Inflation Rises!

[Guest consa]

CPI up to 1.9 RPI Static, inflation remains same!!

thanks spoon

I'm banned from editing topic by the look of it, sorry

http://www.sky.com/skynews/article/0,,30100-13331844,00.html

Edited April 19, 2005 by consa

[spoon]

i don't understand.

official CPI data was literally just released at 9.30AM?

it came in at 1.9%...a higher than expected number.

this will give the MPC something to think about.

[dog]

Can anyone clarify whether Government related costs (perscription charges, fiscal drag, council tax etc), are included in the inflation calculations?

Edited April 19, 2005 by dog

[Guest consa]

i don't understand.

official CPI data was literally just released at 9.30AM?

it came in at 1.9%...a higher than expected number.

this will give the MPC something to think about.

<{POST_SNAPBACK}>

The article "suggested" we will see a rise to 1.7, do you have a link for the official data?

[spoon]

09:31 19Apr2005 RTRS-UK JUNE GILT, SHORT STG FALL ON HIGHER-THAN-EXPECTED INFLATION DATA

LONDON, April 19 (Reuters) - UK gilts and interest rate

futures extended losses on Tuesday after consumer prices data

came in higher than the market had expected.

The Office for National Statistics said that the consumer

price index rose an annual 1.9 percent last month, well above

the 1.7 percent rise predicted by analysts and the 1.6 percent

rate in February.

The number reignited concerns that the Bank of England might

have to raise interest rates, currently at 4.75 percent, in

coming months to head off inflationary pressure.

At 0835 GMT, the June long gilt <FLGM5> fell 30 ticks to

110.70. It was down 20 ticks before the data were released.

The equivalent short sterling contract <FSSM5> fell four

ticks to 95.03, having stood two ticks lower earlier.

[zorn]

Can anyone clarify whether Government related costs (perscription charges, fiscal drag, council tax etc), are included in the inflation calculations?

<{POST_SNAPBACK}>

CPI does not include council tax or owner-occupier housing costs such as mortgage interest and depreciation. It does include an element of property rental costs. It doesn't include any income-related taxes, which don't count as spending, and hence fiscal drag is not relevant to it. It does include prescription charges. It does include taxes levied at point-of-sale such as VAT and excise duties. It also includes such things as fees for passports and marriage licenses.

[Guest consa]

http://212.58.231.24/cci/nugget.asp?id=19

thanks spoon, I am unable to edit the topic

[dog]

CPI does not include council tax or owner-occupier housing costs such as mortgage interest and depreciation. It does include an element of property rental costs. It doesn't include any income-related taxes, which don't count as spending, and hence fiscal drag is not relevant to it. It does include prescription charges. It does include taxes levied at point-of-sale such as VAT and excise duties. It also includes such things as fees for passports and marriage licenses.

<{POST_SNAPBACK}>

Zorn - many thanks

[Sledgehead]

I think consa needs to join me i asking the webmaster for the ability to once again edit topic titles.. 1.9%, being only 0.1% away from the target is much more worrying than 1.7%