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Inflation now 3.5% - not good for savers
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(Approx) the best easy access cash isa is M&S 2.65%, nearly 1% less than RPI. Oh dear !!!0
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thats my point - if this keeps up we are going to have a very tough time just trying to stay at level pegging - grrr.
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HarrowArrow wrote: »Time to spend - re-tiling of roof goes up in my priority list....
Give me £2k and I can buy a new car. I am sure making me happy will be better than you re-tiling
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we are Doomedthe cost of cauliflowers rising by the highest amount since 1996.
not sure how he figures that but the first point sounds like the plan all along to meformer monetary policy committee member Professor David Blanchflower told the BBC that a spell of higher inflation would benefit the UK economy, suggesting that 4% would be a "pretty good starting point". "You would actually end up inflating some of the debt away, but also if we get into a position where house prices were to fall further we are going to have a large number of people in negative equity, and if you have a few years of inflation that actually will deal with that problem."
Higher inflation would help to keep interest rates low, he added.0 -
Since about the beginning of 2008 inflation has been consistently above target - to the extent that about 2.4% has been added to average price levels that would not have been had the policy (2% annual price rises) been adhered to in that timescale [Hmm, "for about [I]the last two years[/I]"]. I'm repeating myself here but what is the point of having a target but then deliberately not setting rates to meet that target? If the circumstances have changed to make the target unattainable then have the government say that and set a new target. But then make sure the BOE sticks to that without the further additional belt loosening (aka re-interpreting the target) entailed in the "we'll be there in two years" mantra. I mean, seriously, would you consider it safe to allow a drunk to talk about being sober "in two years"?..it won't be a surprise when later in the year inflation fails to subside in the way the MPC supposedly believes. Look at their track record......under construction.... COVID is a [discontinued] scam0 -
I will not be impressed if March's inflation is that high.
Screw you student loan
I guess it may be different depending on when you took out your loan but the interest rates for the most recent type of loans aren't simply based upon the rate of inflation. As I've explained below, I expect the rate from September will be 1.5%.Looking at current rates, I expect the interest rate applicable from September 2010 will probably be 1.5%.
The interest rate is based on the annual Retail Price Index (RPI) in March or the highest base rate of a number of major banks plus 1%; whichever is lower.
Well, looking at current RPI, in March it'll probably be about 3%, whilst the "the highest base rate of a number of major banks plus 1%" will be lower so that will apply. It isn't clear whether it is the major bank base rates in March or another month, nor which are considered the major banks, but most banks tend to match the BoE base rate. That's currently 0.5% and I doubt that will rise soon, particularly not by March, so I think for 2010/2011 the interest rate will be 1.5%, still well below what savings rates are likely to be.
(RBS, Llloyds, and Barclays base rates are all 0.5% currently.)0 -
I guess it may be different depending on when you took out your loan but the interest rates for the most recent type of loans aren't simply based upon the rate of inflation. As I've explained below, I expect the rate from September will be 1.5%.
I've already replied to that.
Ignore me. It was a different poster.
And yes, but the rate won't stay that low if rates rise. Bare in mind, we will have the rate from Sep 10 to Sep 11, which is an awful long time away. So it could easily be 3%+ by this time next year.0 -
The published CPI/RPI % figures are measures for the last 12 months i.e. they are not an indication of what's happenning to prices right now.
So I prefer to use the savings interest % that I have received over that same 12 months when I compare to inflation.
I suppose a better indication of 'todays' inflation rate might be to look at price movements since 1st Jan when VAT went back up. Yes ? No ?0
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