Tuesday, June 12, 2007

Yet more smoke and mirrors

UK inflation slows to 2.5% in May

Talk about complete cobblers, this article goes right up ts own jacksee in the last paragragh "Lower food prices, particularly for vegetables and meat, also helped to keep inflation in check." with the following sentence "However, food prices are still rising at 5%, twice the inflation rate."

Posted by mr cobblepot @ 10:44 AM (524 views)
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16 thoughts on “Yet more smoke and mirrors

  • David20040_0 says:

    “Lower food prices, particularly for vegetables and meat, also helped to keep inflation in check.

    However, food prices are still rising at 5%, twice the inflation rate.”

    That doesn’t make sense.

    But this makes even less sense:

    The core inflation rate, which excludes food, alcohol, tobacco and energy, was up to 1.9%, compared with 1.8% in April.

    How can the core inflation rate go up, but the CPI falls?

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  • David20040_0 says:

    The cost of air travel rose sharply compared with falls in the same month a year ago.

    Also if air travel is up how can this lead to a fall.

    So in summary, food rising at 5%, air travel up and core inflation rate up, but CPI falls? Have I missed something.

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  • This is just getting farcical. We keep quite good track of our monthly outgoings and are regularly spending around 8% more than we did this time last year, and if anything we have cut down on the amount of times we go out to eat as prices in our local pubs have gone up by well over 10%. I though Crash Gordon was going to stop the government lies and spin. Perhaps New Liebour just cannot kick the habit of deception.

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  • tyrellcorporation says:

    ‘I though Crash Gordon was going to stop the government lies and spin’

    Mmmm, he’s probably the chief architect of the deceptions so far.

    falling inflation rates are, as you say, quite absurd and I reckon people are generally wising up to this crap.

    I’m New Labour’s worst nightmare as I’ve pared down my expenses to almost zilch. I’m beating inflation my own way by buying at car-boot sales and markets and generally making-do and mending – it’s actually quite addictive.

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  • Not enough fruit/veg pickers in the UK due to changes in summer work rules means that fruit and veg prices will go up as fruit and geg rot in the fields.

    If grain prices go up then meat prices will follow a few months later. Intensively reared animals eat grain based foods.

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  • Exactly!

    Inflation is around 6% and everybody knows it!!!

    Of course the major problem for the gulper is when the unionised workforce (what is left of them) wake up. Then there will be problems!!!

    “I can’t control my members!!”

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  • george monsoon says:

    The BBC reputation is officially in tatters.

    This is so blatantly “made up” propaganda, straight from the ministry of truth.

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  • Complete bullocks! Not being funny but how can anyone believe someone that writes this:

    “Lower food prices, particularly for vegetables and meat, also helped to keep inflation in check.

    However, food prices are still rising at 5%, twice the inflation rate. ”

    So, lower food prices helped inflation drop but food prices are rising at 5%! What the fuck does that mean! Does it mean that our currency is devalueing?

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  • bidin'matime says:

    TC – “I’m New Labour’s worst nightmare as I’ve pared down my expenses to almost zilch. I’m beating inflation my own way by buying at car-boot sales and markets and generally making-do and mending – it’s actually quite addictive.”

    This is exactly the trend that will set in across the country, as people (a) realise that they need to take more care due to rising prices and interest rates or (b) simply fall flat on their faces, financially speaking, if they don’t observe (a). Even if interest rates don’t rise dramatically, the crash will come from beneath, as the support structure for high asset prices gets eaten away, by which I mean peoples ability and / or willingness to pay the prices. If they lose their job because people like you stop shopping in their shop or buying the goods they make / import, then they will not be able to move up the ‘housing ladder’ or will be pushed right off it when they default on their mortgage. The BBC can spin all they like, but eventually the merry-go-round will have to stop.

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  • Waiting Waiting says:

    lying about inflation is worse than you think, people with average salary with a huge mortgage get severely underpaid in real terms, resulting in a even bigger credit crunch than if they were paid the right amount. Plus, jobs will be lost from hidden higher costs and not enough people to pay it. Unless they spend the house…….

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  • The British Bullshit Corporation (BBC) reporting a pack of lies from the Office of Notional Statistics.

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  • Fedupwithhouseprices says:

    I’ve been buying from boot sales, markets and auctions ever since the last crash/recession in the 90s. Learnt how to do it then and have done it ever since. Charity shops are good too and it’s all recycling so good for the environment. We should all do it. It saves you loads of money and you get great satisfaction from finding a really good bargain. It’s addictive!

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  • C'mon Correction says:

    I think CPI as a measure is fairly useless away. What I find very strange is that RPI has fallen ??? We’re TOLD that house prices are always going up, we know that interest rates have risen 40% odd recently and we’re also led to believe that rent prices are rising above inflation ( which I find very hard to believe ). Now these are the biggest outgoings of any home and yet we’re to believe RPI is falling? Why – because of electricity and gas prices we SO high last winter/spring and so them coming out of the yoy fig has had a downwards effect ???? doesn’t add up to me. ( it SHOULDN’T add up !! ONS must have special calculators.)

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  • nice one sovietUK I totally agree. Only here on ‘Fantasy Island’ do the sheeple buy this crap!

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  • I don’t see what’s particularly wrong with this article. Short of it not questioning the nature of the CPI measure (which would take a much longer article), its not particularly contratulating to the BOE, stating that rates will still rise, possibly up to 6%. The BBC is reporting the consensus in a very concise way here. There aren’t many people with the guts to admit 6.5 – 8%, but given them time. It takes a while for today’s high commodity prices and money supply to feed through into higher goods prices and people are only just starting to understand inflation in a globalised world.

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  • I don’t get it – food prices lower – but rising – that’s tautology – surely!!

    A load of…..

    Isn’t it amazing that they were predicting that we would get here – and we have – inflation down to 2.5%!!

    I’m just cynical I guess.

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