Tuesday, February 15, 2011

CPI hits 4%

UK inflation rate rises to 4% in January

... but, but we must protect the masses who we conned to buy continually over-priced piles of bricks, to fuel UK based [not owned or HQ'd] financial services and to bring in more Stamp Duty.

Posted by doomwatch @ 09:54 AM (4440 views)
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11 thoughts on “CPI hits 4%

  • i think it is time to start a revolution, every week I see food prices going up, might only be a few pence here and there but it adds up, soon the average person won’t be able to eat.

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  • Temporary factors, don’t worry, hunger will enable us to think more lucidly about who got us into this position.

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  • a friend of mine owns several petrol stations, speaking to him yesterday he said people have cut back on buying petrol, less car washes and very few sweets, drinks etc, he said he will have to start cutting staff and reducing opening hours..

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  • ”RPI rose to 5.1%”
    Oh goody, the Gov is paying me 6.45% and 6.1% tax free on my NS&I savings. No wonder they withdrew them last year. They knew only too well which way inflation was headed and Merv wasn’t at all surprised by how stubborn it was going to be.

    ….. hang on, my index linked final salary pension is only index linked up to 5% RPI so I’ll lose out.

    ….. but hang on again, the gov is changing the prefered index to CPI so if they stick to 5% index on that I’m ok

    ….. but hang on yet again, if they change the index from RPI to CPI I’ll lose out by about 1% each year.

    Ever get the feeling that somebody is trying to confuse you over how much you are being screwed?

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  • “Bank of England governor Mervyn King has now written to the government, after sending three such letters last year, explaining the outlook for inflation and what will be done to tackle it.”
    But we keep being told that the factors affecting inflation are external so raising IR’s will have no impact, so presumably the explanation for “what will be done to tackle it” will be “nothing will be done to tackle it”.

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  • It has been clear for some time that the bank of england is only interested in propping up the housing bubble. For years they have been carrying on about the risk of deflation, but the only thing that risks deflating is housing prices (and the value of people’s savings). I think that it is obscend that they continue to favour housing speculators over savers.

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  • So shall we say an interest rate of 6% to get ahead of the game and stop this inflation in it’s tracks.

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  • just found this on the liverpool mail website

    The Governor of the Bank of England has warned that there is a “great deal of uncertainty” over the outlook for inflation after the rate soared to its highest level in more than two years.

    In a letter to Chancellor George Osborne, Mervyn King said inflation is likely to continue to pick up to between 4% and 5% over the next few months

    Read More http://www.liverpooldailypost.co.uk/liverpool-news/uk-world-news/2011/02/15/bank-chief-warns-over-inflation-92534-28173568/#ixzz1E1tsk76Y

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  • How can they blame the increase on the VAT rise from 17.5% to 20%, when there was a rise from 15% to 17.5% at the beginning of last year? The YoY figure should cancel this out.

    The basket of goods will have increased by roughly 2.1% YoY?

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  • general congreve says:

    Don’t worry about the interest rates not being raised, raising the cost of living across the board, via inflation, will have a similar effect to raising interest rates, as it will impact on everyone’s disposable income, thereby bringing closer the day of default for those overstretched on their mortgages. It also puts people out of jobs, as people are spending less in the economy, so they can’t pay their mortgages either (see @3), so happy days.

    Of course, higher interest rates would give HPCers the double bonus of higher costs for cash-strapped homeowners and more interest on their savings, so you are still being done by watching your deposit fund shrinking in real terms, if you kept it in sterling that is.

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  • Skewed Value @ 9 – think that might be Skewed Maths…

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