Thursday, September 21, 2006

Bank of England issues inflation red alert

Inflation red alert points to rate rise

The Bank of England has commissioned independant inflation data which raises serious questions regarding the validity of inflation stats produced by the Office for National Statistics (ONS). The ONS shows inflation currently at a nine year high at 2.5% but the data used by the Bank of England suggests inflation has risen by 2 percentage points since last summer alone, while retail services were rising at their fastest pace since records began 6 years ago.

Posted by denzil @ 11:38 AM (605 views)
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15 thoughts on “Bank of England issues inflation red alert

  • How many more signs do these idiots at the MPC need before they make a realistic move to curb inflation??? Forget about subtle hints, and comments of ‘surprise’. Bloody well increase rates aggressively will you FGS. Lets get this thing going ’cause I am fed up of waiting for HPC FFS.

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  • tyrellcorporation says:

    AMAZING! Shows how corrupt the ‘official’ figures are.

    ‘More unexpected was the disclosure that new member David Blanchflower confessed that he might soon vote to cut rates, having been the sole member not to vote for last month’s rise.’

    This is even more amazing… obviously one of Gordon’s men on the inside…

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  • Incredulous, cutting rates !!! how much is this shower of traitors paid to screw up the nation’s finances completely? The Enron fiasco is going to look like a mild accounting error compared to the sh**t that hits the fan when the chicken comes home to roost for this sorry episode in British history.

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  • waitingfor hpc says:

    yep – how on gods earth can he think about a cut? but then he is an American and they do shoot more of there own men than anyone else!

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  • george monsoon says:

    Oh well, the truth can be buried under makeup for a while, but it always pops to the surface like some festering pimple, visibile to all.

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  • For ‘David Blanchflower’ See ‘Gordon Brown Noser’.

    I mean what an idiot, the MPC commission a seperate inflationary calculation report showning the Office of Stats is incorrect. see he said a cut. I for one want to know why?

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  • Ah, so the MPC are finally fighting back against the Treasury. Come on Merv, whack ’em up, you know you want to!

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  • 150,000 a year they get.

    Incredible.

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  • Alas, life is not so simple. Even if the BoE’s own figures say inflation is high and rising, should the CPI drop (as many predict it will – Kate Barker), the BoE will not have justification for increasing interest rates. The general public will loose faith in official figures. How could that ever be allowed to happen?

    waitingfor hpc
    The Yanks shot more of us up then their own soldiers. 2 x Warrior crews in Gulf War 1; 1 x Saxon in Kosovo; multiple Blue-on-Blues in Gulf War 2; 1 x Snatch in Helmand (luckily no one hurt).

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  • Sorry Lads,
    Blanchflower’s a Brit. Born in Brighton and educated in England and Wales, worked in Leicester, Birmingham, Surrey, London, and etc., moved to US at age of 38 when he was recruited to Dartmouth to undertake Economic Research. There are any number of things you might blame the States for, fortunately he and his economic brilliance don’t qualify. I don’t know how many of his own men he’s planning to “off” while in office but he has a website, maybe you can write in and ask him.

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  • What’s really incredible is that statistics have only been kept on inflation in Britain for the past six years. What happened to the rest of modern economic history? Did they just not notice inflation or was it considered a negligible factor? If six years represents the entire statistical history of inflation in Britain no wonder they’re so pitiful at tracking and reporting it.

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  • ‘but in recent years the Bank’s agents have produced their own alternative measure’…..says it all really!

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  • Indiablue – where did you get that idea? I was studying the Sandilands Report into accounting for inflation uni at back in the early 70’s. The RPI has been published for years – see http://www.statistics.gov.uk/downloads/theme_economy/Rp02.pdf for details since 1947.

    But more importantly, the quote that stands out in the article to me is:-

    “In another worrying sign of rising prices, the Bank said its measure of how much money was circulating around the economy had hit a 16-year high. Broad money levels rose by 13.7pc in the year to August, while so-called M4 lending increased by 14.7pc in the same period. The Bank warned previously that growth in money levels could spark higher inflation.”

    Inflation stems from too much money chasing too few goods – the use of the word “could” seems a little complacent. The credit binge is showing up in the money supply figures – an increase in inflation is inevitable.

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  • Bidin’…..Oh yes, I see what you mean, thanks for the correction — not records on inflation, but records on “retail services prices” have only been tracked for the past six years. And I suppose those particular figures will have nothing whatever to do with the “basket” anyway — as so few things do — even though those costs might be the difference between survival and bankruptcy. So probably doesn’t matter if they’ve been tracked for six years, sixty years, or six minutes.

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  • Inflation Is Eating My Savings says:

    They want inflation, it is simple. This may mean that house price falls may be real, but not nominal.
    Any state with a debt wants inflation. And the trusted engines of the state will often play ball. The best example is the German government of the 20s, whose debt to France was denominated in marks. The end result was that the total German war debt could be paid off with one day’s salary of the lowest paid worker.

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