Monday, February 11, 2008
Rate cuts and increasing inflation……
Producer prices at 16 year high
Do BoE know what they are doing? I think not. ''Price inflation of goods leaving UK factories has reached its highest rate in 16 years, driven higher by petrol and food costs, official figures show. Annual output price inflation reached 5.7% in January, up from 5.0% the previous month, according to the Office for National Statistics (ONS).''
Posted by hpwatcher @ 09:57 AM (797 views)
5 thoughts on “Rate cuts and increasing inflation……”
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geed says:
Don’t panic, they are cutting rates, everything will be fine, they clearly know what they are doing.
I am so glad that the ONS is now reporting inflationary numbers that err towards what people are seeing on the street. Rates will not go lower that 5.25%, thats my prediction – although doubt always creeps in when I remind myself that credit junkie prats such as Blanchflower sit on the board.
Rates back up to 5.5% by Summer. Bring it on. If they are gunning for inflation this is what should happen.
Greenbay says:
Doubtfull geed, i think the focus is now on uk growth and the credit crunch not the ‘shortterm’ inflationary pressures.
A letter will be issued by the bank for exceeding the inflation target but this will not be a suprise and will be justified during this period of financail turbulence.
In my opinion rates will be 4.75% by year end.
Mattormsby says:
No No No….
inflation is 2 %.. I heard the man say so…..
hohhohohohohhooh
waitingfor hpc says:
Just had my foam supplier put another 10% on his prices. He siad his factory energy bill is up 100%!!!!!!!!!!!!!!!!!!!! on last year. Like me (I run my own factory in Essex) he sees the govt figures and paper as a joke on inflation and IR’s.
But GOOD point is that a school friend of his runs as estate agents in London, he spoke to him at the weekend and he said the last 3 months have been the WORST HE HAS EVER KNOWN , some weeks he has had nothing to do!!!! In conclusion my supplier said that house prices are crashing, the sooner the govt & papers admit it we can get on with saving the real economy before inflation gets a hold too much. I can run my factory in Poland 50% cheaper than here in the UK, I stay because I am trying to employ Brits, but if this country will not curb my rising costs I will be forced to save money and a site move is the obvious one.
Must go back to work now!
Hpwatcher says:
”a school friend of his runs as estate agents in London, he spoke to him at the weekend and he said the last 3 months have been the WORST HE HAS EVER KNOWN ”
Only a old school friend would get honesty like that. The rest of us would be told something like:-
‘the market is recovering, as we knew it would’
‘house prices are increasing’
‘It’s always a bit slow at this time of year, you’d better buy now’
I would rather trust a second hand car salesman, than an estate agent anyday……..