Monday, August 13, 2007

Inflation data shows pressure may be easing

Inflation data shows pressure may be easing

Prices of goods leaving the factory gate rose as expected last month, while firms saw a surprise fall in their costs, official data showed today. Input prices fell 0.5% on the month in July, the weakest rate since January despite City forecasts for a monthly gain of 0.7%, the Office for National Statistics said.

Posted by david20040_0 @ 08:40 PM (652 views)
Please complete the required fields.



5 thoughts on “Inflation data shows pressure may be easing

  • I think we need to ask the following questions

    1) How much of UK factory goods do we use and which are a part of inflation calculations.
    ie. Is the price of Jaguar going down or common every day items.
    ANS) I don’t know the answer to this but I can safely assume more Jaguar than common goods as we are only producing for a neach market.

    2) What percentage of our consumption is from these goods. 2% or 70%.
    ANS) More closer to 2% than 70%.

    3) Do most of the every day things that we consume including food. Is it imported and if yes then is the price rising in such countries.
    ANS) The answer being YES.

    4) Has GBP pound lost value against currencies from which we export from?
    ANS) Yes UK pound has fallen almost 10% in value against currencies from which we import from. Hence we have to pay more for the same amount of good that we buy for. Hence the UK consumer pays more.
    Check Indian Rupee was £1 to Rs89 in the begining of the year and is now around Rs.82. Hence for the shirt that you buy you have to pay more.

    All in all these statistics mean nothing on the face of it.

    Something more for you David ,in my first class of statistics my professor as us one question
    Q) What is the similarity between Statistics and a mini skirt?

    Ans) It shows what is not important and hides what is.

    Have a Good Evening.

    Reply
    Please complete the required fields.



  • Cheekie Charlie says:

    “However, analysts said that the wet weather presented some upside risks to inflation. Prices of wheat, barley and soft fruit rose, with food prices as a whole increasing more strongly than usual, up 0.5% on the month. This took the annual inflation rate to 3.7%.”

    Reply
    Please complete the required fields.



  • “However, analysts said that the wet weather presented some upside risks to inflation. Prices of wheat, barley and soft fruit rose, with food prices as a whole increasing more strongly than usual, up 0.5% on the month. This took the annual inflation rate to 3.7%.”

    Wet weather so maybe inflation up, half price sale at Primark so maybe down. Coal in China so maybe up, hmmmm …. dunno ….

    Whiffly piffle.

    Reply
    Please complete the required fields.



  • Lets just cool our heals for a few days.

    Remember, for the first few days of last week – all problems were well contained and this was a little sub prime problem – then on around Wednesday or Thursday BNP Paribas freezes some funds and 3 central banks start the printing presses on over drive.

    The little “spell of time” then finishes with Goldman Sachs pumping $2 billion of this cheapened money into their own fund.

    Also, lets just watch the currency markets.

    Remember, whilst we are pumping all this cheap money onto the markets we are trying to persaude China and a host of Asian countries that we really should be paying the current exchange rates and able stay in cities more advanced than our own in a 5 star hotel at 50 GBP a night.

    The data is noisy. The logic has always been sound: you can’t create value of of thin air.

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Chinese inflation at a high and the risk that the Yuan may soar and loose its dollar peg are the most pressing issues, but this does add a significant additional factor. Manufacturing does account for 15% of our economy afterall (is that right?) so is still worth looking at, but will not be significant in isolation. The issue was summarised by King recently, that inflationary figures are on the upside throughout the economy.

    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>