Monday, Oct 09, 2006

No need for IR rises, inflation is all under control now...

The Times: Rate hike in doubt despite strong house prices

There was more potential good news for homeowners as official inflation figures showed weaker oil prices lessened inflationary pressures in the manufacturing sector in September, a move economists said raised doubts over an expected rate hike next month

Manufacturers' core input prices, which strip out volatile factors such as food, tobacco and petrol, fell 0.5 per cent on the month, driven by lower import prices and a stronger pound.

John Butler, the HSBC economist said: "Manufacturers may have struggled to pass through higher costs but in September they quickly passed through the downward pressure."
Mr Butler said: "Overall, inflationary pressures have eased. The MPC has changed its story in recent months and now expect any drop in oil and commodity prices to boost real income and, hence, drive core inflation higher. So far there is still little evidence that core inflation has responded."

Howard Archer, chief UK economist at Global Insight, said: "An interest rate hike in November looks by no means a done deal at the moment."

Posted by little professor @ 03:14 PM (484 views)
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1. tyrellcorporation said...

Little Prof, can you trim down the length of your pasted text as it bumps threads off the bottom too quickly?



Monday, October 9, 2006 03:25PM Report Comment

2. waitingfor hpc said...

utter crap. I work in manufacturing this is just not true !!!
and we are not booming.....

Monday, October 9, 2006 04:04PM Report Comment

3. C'mon Correction said...

Unless sterling takes a serious hit (still baffles me why it's so high and our economy is deemed a safe haven) I can see inflation figures being fiddled more and more and thus no rise. Certainly a cut in the new year, Nu Labour will pull every string going.

"Come on Britain we're only 1.3 trillion in debt, we can better that " !!!

Monday, October 9, 2006 04:15PM Report Comment

4. Surfgatinho said...

Like has pointed out many times higher commodity prices didn't seem to push inflation up over the last couple of years so why should 1 month of easing cause inflation to cease being a problem?

Monday, October 9, 2006 04:16PM Report Comment

5. Ticktock said...

So oil prices rise and it is felt that unlike previous oil spikes, as wage demands are contained, that the rise would be non- infationary, acting as a brake on growth, and forcing the MPC to cut rates. Then, when prices fall, inflation is now falling, meaning that rates do not need to rise and no doubt should actually be cut again.

They just go round and round in circles with the conclusion, whatever the scenario, being a pause, or cut, in rates.

Why don't the Times simply state that every scenario requires a cut in rates, everytime, without question, and that rates should never ever ever go up, regardless of the economic environment. It would spare us having to read this bullshit every month.

Either these people are utterly clueless, or they are seeking to deliberately deceive their readers for their own ends.

Which of these options is the most likely of a Murdoch rag?

Monday, October 9, 2006 04:22PM Report Comment

6. harold said...

Expect to see this sort of article quite a bit over the next few weeks - designed primarily to 'flush-out' any remaining mugs into taking on debt. Howard Archer, no relation of Jeffrey I suppose?

Monday, October 9, 2006 05:10PM Report Comment

7. waitingfor hpc said...

anyone know where you can buy gold from ... i want to spread my money around a bit.

Monday, October 9, 2006 05:27PM Report Comment

8. d'oh said...

Re: waitingfor hpc

Krugerrands delivered to your door.

Monday, October 9, 2006 06:25PM Report Comment

9. tyrellcorporation said...

I just found, I've got no idea about buying gold so don't take any advice from me. I like the idea of buying it though - just a shame I didn't step in when Crash Gordon sold off our gold reserves at a historically low price - he's a shrewd operator eh!

More seriously, have we any city types on the forum that can advise on buying gold?

Monday, October 9, 2006 06:31PM Report Comment

10. holding out said...

Re: Investing in gold

There is a article in moneyweek which is more about the idea than the practicality but there are some links.

I would also be interested in buying some gold as a hedge but don't want the hassle of owning and storing the stuff.

Monday, October 9, 2006 07:16PM Report Comment

11. harold said...

However, the recent fall in commodities may not be over.

Monday, October 9, 2006 07:40PM Report Comment

12. Pintail said...

I am very interested in buying gold too but is it worth the hassle could'nt I just keep my money in an isa and high rate savings account, is your money safer in gold, also when you get the gold where do you put it. love the idea not sure of the practicality does anybody out there have any advice.

Monday, October 9, 2006 09:30PM Report Comment

13. bidin'matime said...

tyrellcorporation said...
Little Prof, can you trim down the length of your pasted text as it bumps threads off the bottom too quickly?

Doesn't the page always show the last 10 articles, no matter how long the intro?

Monday, October 9, 2006 10:12PM Report Comment

14. Nohpc said...

More good news. Fingers crossed no interest rate hike needed!

Monday, October 9, 2006 11:14PM Report Comment

15. tyrellcorporation said...

...Probably... my scrolling finger is in plaster!

Tuesday, October 10, 2006 09:32AM Report Comment

16. inbreda said...


you can buy 'shares' in gold if you have an account with a share trading site e.g.

Just search for Lyxor.

Easy really.

Tuesday, October 10, 2006 10:44AM Report Comment

17. little professor said...

Hi Tyrell,
The News Blog home page always shows the last 10 articles, regardless of post length. Sorry if my posts are too long, it's just that I know lots of people don't have time to read the whole linked article, so I try to paste the most interesting/relevant parts. I'll shorten the posts if that's what people want.

Oh, and gold is quite easy to buy; the main problem is storage. You don't really want to have a couple of thousand pounds worth of gold lying around the house ready for burglars to steal. You can keep it in in a bank locker but you will be charged for this, which will erode the value of your investment. It's not an easy problem.

Tuesday, October 10, 2006 10:48AM Report Comment

18. Andyhann said...

Pintail said..... check out and have a read. They provide allocated gold stored in bank vaults in London, Zurich, New York. Safest way to hold gold I believe, especially if you think the s... might really hit the fan! The costs of storage are minimized as they combine clients holdings...

Tuesday, October 10, 2006 12:42PM Report Comment

19. tyrellcorporation said...

What about 12 paces South from the greenhouse, 8 paces east towards the pergola and then 4 paces South again to wards the concrete Keith Chegwin figurine.

Bury it in the garden, I can't see the average chavvy thief picking up a spade and doing five minutes hard graft for any money!

Tuesday, October 10, 2006 02:46PM Report Comment

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