Tuesday, Dec 12, 2006

UK inflation at near-decade high

BBC: UK inflation at near-decade high

UK inflation has accelerated to its highest level for almost a decade in November, increasing the chances of an interest rate rise early in 2007.

Posted by millard @ 10:05 AM (511 views)
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14 Comments

1. tyrellcorporation said...

If only the BoE was as vigilant as the ECB - they're now nudging 30% above their target! It's gonna be tricky trying to spin their way out of this with the old... 'we expect CPI to moderate in the medium term' crap. These quarter point rises are having no overall effect because people basically just don't notice them. An extra 20 quid a month is peanuts to most people, especially those who are making 300 quid a week from HPI.

The best thing figures like these do though is make the MPC look a bit daft - and that is , I reckon, the only thing that will make them become more hawkish.

Tuesday, December 12, 2006 10:45AM Report Comment
 

2. denzil said...

>>Howard Archer, of Global Insight, said he was sticking - for the moment - to a forecast that rates would remain there (current 5% for some time.

I like the bit, " - for the moment -". I guess that means until he realises he is wrong again, which is typically the day before the MPC make their decision when most people in the know have a really good feeling of the MPC decision.

Howard Archer appears to be reading from the same crystal ball with the same success rate as Smith of the Times.
I can easily see rates at 5.5-6.0% by close of 07. Whether this will cause an HPC is debateable.

Tuesday, December 12, 2006 11:32AM Report Comment
 

3. paul said...

The whole "wait and see" excuse for inaction has blown up in their face. Especially as now this jump will now be factored into EOY wage settlements.

Yet again, we've proof that incompetents are at the helm of the economy.

Tuesday, December 12, 2006 11:33AM Report Comment
 

4. Blindleadtheblind said...

the reckless pumping of money into the system starting to appear in the figure, a rise from 2.4 to 2.7 is a jump of around 12% and another jump of similar size will require a letter being written to our wise Chancelor. Add in the mix the Telegraph article predicting a falling pound as its overvalued and given the trade deficit that should increase inflation even faster. No suprise the BoE and the FED are in the same no win position, raise rates to defend the currency and kill the debt laden public causing a recession of epic proportions. Oh dear, what did they do. Reap what you sow....

Tuesday, December 12, 2006 11:53AM Report Comment
 

5. Boarder said...

Who was suprised by this? I wasn't.

Tuesday, December 12, 2006 01:06PM Report Comment
 

6. Albertini Albertino said...

Sweet! Nice to see that, despite all the fiddling, fudging and downright bending of the inflation figures, there's only so much 'control' the numbers can take.

And Crash Gordon slapped 2p on petrol last week, didn't he? That might nudge it higher.

MPC out.

Tuesday, December 12, 2006 01:09PM Report Comment
 

7. Surfgatinho said...

If I read an article about this with the word suprise in I won't be suprised!
However, these figures shouldn't suprise anyone with half an ounce of wit

Tuesday, December 12, 2006 01:33PM Report Comment
 

8. inflation is eating my savings said...

>Yet again, we've proof that incompetents are at the helm of the economy.

Unless their goal is a mini wage-price spiral, in which case they are doing a great job

Tuesday, December 12, 2006 01:45PM Report Comment
 

9. paul said...

Well indeed. Mini spirals tend to become big spirals and big spirals tend to become hyperinflation. A sure sign of economic mismanagement.

It hasn't happened yet, but I'd bet this might be the start of it.

Tuesday, December 12, 2006 03:21PM Report Comment
 

10. george monsoon said...

Whatever the speculation, the Government are admiting that inflation is higher, and this is good for us because ultimately there will be a downturn in houseprices.

Unless as "inflation is eating my savings" says, they are aiming for a wage spiral, probably the only way they have of sustaining house price increase. lets face it, slap in the face economics shows that most of us (FTB's) are out of the running unless something changes.

I would imagine that Crash Gordon is praying for a miracle right now.

Tuesday, December 12, 2006 03:29PM Report Comment
 

11. the bald man said...

High interest rates, high taxes (local and national), no pensions, a pound that will shortly be under pressure, pathetic productivity, a bloated public sector running out of money, public sector pensions out of control massive consumer debt, inflation. Its going to take some miracle. "Beam me up Tony"

Tuesday, December 12, 2006 03:40PM Report Comment
 

12. holding out said...

We can always manufacture our way out of this malaise.

Britain leads the world in the manufacture of Bands, Statistics, Dodgy dossiers, Reality TV shows and CCTV masts (Cameras made abroad)

Tuesday, December 12, 2006 03:57PM Report Comment
 

13. talking rot said...

I can not help thinking that Gordon Brown will call a General Election 6-12 months after he takes power. This will happen a few months before the collaspe of his economic miracle and will give him the time he needs to work his way out of the hole. It will be very interesting to see who replaces him.

Tuesday, December 12, 2006 07:16PM Report Comment
 

14. Northernlad said...

I hope Liebour stay in....let 'em eat their own sh*te!

Tuesday, December 12, 2006 08:52PM Report Comment
 

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