Wednesday, Aug 09, 2006

Government CPI figure to pass 3%?

Financial Times: King warns inflation could exceed 3%

Bank of England governor Mervyn King said on Wednesday there was a high probability that consumer price inflation could spike higher in the remaining months of the year, with the possibility it could touch or go above 3.1 per cent.

Posted by uncle chris @ 02:23 PM (556 views)
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14 Comments

1. Sloth said...

Even their fake inflation figures are spiking.

New Labour, Old economic problems.

Wednesday, August 9, 2006 02:32PM Report Comment
 

2. Waitingfor Hpc said...

and the figures are fake. What good is a letter to CRash Gordon when true inflation has taken off?????
How about we raise INTEREST RATES in line with the US & our own inflation figures????? Or this that too obvious. Why are private school fees in CPI measure and not mortages or house prices, or petrol .... or anything we all buy which has gone up way more than 2.5%?

Wednesday, August 9, 2006 03:00PM Report Comment
 

3. waitingfor hpc said...

and the figures are fake. What good is a letter to CRash Gordon when true inflation has taken off?????
How about we raise INTEREST RATES in line with the US & our own inflation figures????? Or this that too obvious. Why are private school fees in CPI measure and not mortages or house prices, or petrol .... or anything we all buy which has gone up way more than 2.5%?

Wednesday, August 9, 2006 03:01PM Report Comment
 

4. Rickyb said...

I think Mervyn had better get his pen and paper at the ready. If inflation doesn't exceed 3.1% in the next couple of months, then I'm sure it will by the time they add the 0.25% when tuition fees are added to the CPI in October. You'd think that the MPC might have had some forewarning of this 0.25% rise and acted a little earlier, wouldn't you?

Wednesday, August 9, 2006 03:01PM Report Comment
 

5. George Monsoon said...

waitingfor hpc said "Why are private school fees in CPI measure and not mortages or house prices, or petrol"?

- because that would indicate the true level of inflation, and the Government don't want us to know the truth.

:O)

Wednesday, August 9, 2006 03:16PM Report Comment
 

6. sirgoogle said...

School fees in The Netherlands have gone up by 3.8% for Sept. This reflects the cost of living (and heating) that the school is now facing.

I think that this is a much more realistic figure. Unfortunately our pay will not increase to pay the difference !

Wednesday, August 9, 2006 03:52PM Report Comment
 

7. Bloody Annoyed said...

Did inflation figures include petrol and/or house prices in the past? I am eager to separate out the all the spin including that which originates from this forum so that I can gauge in my own modest way whether the economy is truly f*cked.

Wednesday, August 9, 2006 04:47PM Report Comment
 

8. Northern Lad said...

vote 'em out!

Wednesday, August 9, 2006 06:01PM Report Comment
 

9. harold said...

I'm not sure why private school fees are included in the CPI either, however I can assure you guys that they are rising faster than 3% per annum. Given this governments ability to manipulate the figures (in the hope of conning the public that inflation is low), I'm surprised they don't include state school fees - they haven't risen for 50 years!

On a serious note, King must be pleasantly surprised by sterling's performance following last week's IR rise. However, today's missive makes it clear that he thinks further rises will be needed to restore people's faith in our fiat currency, and that sooner or later poor economic indicators (including the manipulated CPI figure) are going to call the into question.

Wednesday, August 9, 2006 07:06PM Report Comment
 

10. Micthemike said...

did anyone see the CML stats stating that it now takes about 3.5 times earnings to get into the property market, beats me how they arrive at that figure lets assume average earning somewhere optimistically in the region of 30000 presumably that would average property in the range of something like 120000. really how can they put out figures like this which is so obviously misrepresenting .

Thursday, August 10, 2006 03:11AM Report Comment
 

11. inbreda said...

I think the figure of 3.5 is affected by a number of factors. Rich kids buying without a mortgage or with a very small mortgage. FTBs borrowing sums from relatives etc etc. Basically, if the banks cap the income multiples the slack is taken up by relatives.

The figure of 3.5 does not itself give any indication of the REAL level of debt that the FTB has taken on.

Nor does it indicate what they're getting for their money - i.e. their real income ration may be 5, and all they may have to show for that is a bedsit.

Given that there will always be wealthy parents fronting up a large deposit, and considering that banks won't lend 20 times income, I'd say that the average of 3.5 is about as high as it could possibly go.

Thursday, August 10, 2006 09:56AM Report Comment
 

12. paul said...

I assume that if inflation does surpass 3% then the MPC would all have to resign, having failed their remit?

Or will they just shrug their shoulders, collect their cheques and write a letter to the chancellor promising to try harder next time? Hmmm.

And presumably too, before inflation hits 3% they will have maxed out interest rates to prevent it? At around oooh, 15% say?

Thursday, August 10, 2006 10:06AM Report Comment
 

13. inbreda said...

Basically, they'll raise intereest rates when it becomes an easier task than being paid 130,000 per year and writing the odd letter to Browny.

Personally if someone was going to pay me 130,000, I reckon I could write an awful lot of letters.

Perhaps the government should consider more stringent punishments for when the MPC completely fail to achieve their remit. Perhaps taking away their private parking spaces? Or perhaps turning the lift off so they have to climb the stairs? That's what my boss would do if I failed completely in my job.

Thursday, August 10, 2006 03:40PM Report Comment
 

14. Ticktock said...

vote 'em out!

Which party is not funded by exactly the same people though? Torys won't dare upset Big business/media/US/Isreal either. They wouldn't be allowed to govern the collony if they were prepared to rock the boat.

When the number of 'spoiled ballots' exceeds the number of votes given to the winning party, change will have to come. This is the way to stop them.

Thursday, August 10, 2006 04:35PM Report Comment
 

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