Thursday, August 24, 2006

More Inflation pressures building!

Price of food and drink will soar, experts predict

On top of soaring fuel bills, petrol prices and council tax, retail experts issued a warning yesterday that the cost of food and drink was about to go up sharply. Supermarkets are expected to pass on higher prices to customers after a combination of poor harvests and the rising cost of global commodities such as orange juice and coffee. Drink up: The cost of orange juice is expected to rise by up to 25 per cent over the next few months. The cost of food has been rising substantially this year. The British Retail Consortium said food prices went up in July for the third month in a row. In the 12 months to July, food inflation was 3.2 per cent compared with the overall inflation rate of 2.4 per cent.

Posted by tyrellcorporation @ 08:20 AM (534 views)
Please complete the required fields.



8 thoughts on “More Inflation pressures building!

  • Look forward to sipping my orange juice in my bargain price semi next year (=:

    Reply
    Please complete the required fields.



  • IR rise in september anybody?

    BFS

    Reply
    Please complete the required fields.



  • Interesting how the article never mentions the ‘I’ word. Inflation.

    Reply
    Please complete the required fields.



  • There will be a rise in September. That’s my prediction.

    Perversely, these rises might not affect the inflation statistics much, because as we all know, champagne, DVD players and players play a much more important role in the economy than bread, milk, housing and petrol.

    In fact:

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/08/16/cncpi16.xml

    Reply
    Please complete the required fields.



  • Very true Paul.

    Perhaps this means that whereas, in the past, a 4% rise would have brought inflation down, perhaps by modern measures it will require a 15% rise.

    More likely is that they will change what is in the basket of goods to things which they KNOW are going to reduce in the near future, thus fiddling the stats from both sides.

    Reply
    Please complete the required fields.



  • My guess is an Inflation rise in September, and then another in November or December – My guess is that it will reach 6 percent before the end of next year, it might go even higher. Maybe within the next three years we will see it back up higher than 8 percent. I wonder how many people will say that cannot happen! As so many have said the next 18 months is going to be very interesting.

    Reply
    Please complete the required fields.



  • Another fiddle will make a lot of economists scratch their chins and conslude the MPC doesn’t know what it’s doing.

    No, far more likely perhaps is as you hint breda, that the rate rise will need to be much higher to impact inflationary rises. However, if spending is based on house price rises being MEWed away, then the desired effect might come about anyway … ?

    I want to know how unemployment affects inflation. What is the causal relationship? Can anyone enlighten?

    Reply
    Please complete the required fields.



  • ”I want to know how unemployment affects inflation. What is the causal relationship? Can anyone enlighten?”

    – Rising inflation tends to cause unemployment, as it causes interest rates to rise, and with that, reduces the willingness to spend, invest, and take on debt.

    – Rising unemployment tends to moderate inflation, as the spare capacity in the labour market reduces the cost of labour.

    While these influences are significant, one should not over-estimate their impact however.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>