Thursday, December 13, 2007

BOE worried that people think inflation is rising!!!! Do they never do the weekly food shopping?

UK inflation expectations soar to a record

BOE is worried that people expect inflation to rise. Well with milk, cheese, bread, petrol, gas and taxes going up just what did they expect!! I think the BOE should be forced to do the weekly food shopping! Anyway Gordon has a plan, you alwanted house prices to be in the CPI so now they are falling like a brick I bet he will build them in! Oh yes the artice also mentions the dreaded "R" word.

Posted by who stole my pension? @ 07:38 PM (934 views)
Please complete the required fields.



7 thoughts on “BOE worried that people think inflation is rising!!!! Do they never do the weekly food shopping?

  • I can’t find the latest salary info but below is an extract from the BOE site – can’t see these guys noticing 3p on a pint of milk when picking up £22K per month top line pay.

    Sir Edward George is being paid £256,893 in the year to June 2003. His salary during his present term of office has been increased each 1 July by 2.5 per cent. Sir Edward’s salary for the year to 30 June 2003 will be used as the base line for Mr King’s salary, increased by the usual amount of 2.5 per cent on 1 July to £263,316. (The salary figures in the Annual Report for the Bank’s financial year to 28 February are slightly different, because the pay rise takes place part way through the year.)

    Reply
    Please complete the required fields.



  • Is this the right time to post this graph again? It’s become very fashionable recently …

    Just look at that differential … there are your inflation expectations right there in a nice graphical easy-to-use even-a-central-banker-could-understand format.

    Reply
    Please complete the required fields.



  • crash bandicoot says:

    Three months ago some were asking if the credit crunch would spill over into the “real” economy. Looks like it might.

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Post it as much as you like. That graph is important. Very important. Note that RPI hasn’t fallen much whilst CPI dropped since January. There is a continuing trend there. A better graph would be the difference between cpi and rpi as a single figure, is the growth curve of the difference exponential?

    Reply
    Please complete the required fields.



  • If Western governments keep devaluing their currencies by dropping interest rates and injecting billions into the banking system, oil prices and prices of imported commodities will go up as a self-balancing mechanism.The same thing happened in the Seventies when Anthony Barber in the UK staged a give-away budget that increased spending-power no end, only for OPEC and the British unions to refuse to be paid at the old rates.BTW house prices went uo 100% in two years post Barber , no protests in those days.We will in effect pay higher prices at the pumps and in the shops
    for the privilege of keeping the over-mortgaged in their houses because governments and all political parties will do anything to keep house price inflation uo because the mortgaged masses control elections..All the best.

    Reply
    Please complete the required fields.



  • Planning4acrash says:

    Right, I did the data set. The RPI CPI gap is a definite trend. I’m going to try and upload a graph to wiki over the weekend. It goes a little something like this: Starting from Oct 2005. I think that the gap goes a long way to explaining the LIBOR rate gap.

    0
    0.1
    0.3
    0.5
    0.4
    0.7
    0.6
    0.8
    0.8
    0.9
    0.9
    1.2
    1.3
    1.2
    1.4
    2
    1.8
    1.7
    1.7
    1.8
    2
    1.9
    2.3
    2.1
    2.1

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Here is the CPI-RPI gap since October 2005 when the most recent rout began. The gap was high before 2005 and closed up just as the housing market seized up. Then housing went off again when the gap opened up after the interest rate cut. One could say that this is the prime cause of the housing boom. Hopefully get the graph on the website or wiki and get the CPI-RPI gap plotted against the LIBOR gap, which I reckon will correlate strongly.

    0
    0.1
    0.3
    0.5
    0.4
    0.7
    0.6
    0.8
    0.8
    0.9
    0.9
    1.2
    1.3
    1.2
    1.4
    2
    1.8
    1.7
    1.7
    1.8
    2
    1.9
    2.3
    2.1
    2.1

    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>