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MSE News: UK inflation hits five-year high of 3%

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Former_MSE_Callum
Former_MSE_Callum Posts: 696 Forumite
Third Anniversary 10 Posts I've been Money Tipped! Newshound!
edited 18 October 2017 at 5:40PM in Savings & investments
The UK's key inflation rate hit 3% in September, the highest it's been since March 2012. The figure means pensioners can expect a 3% uplift in the basic state pension from next April...
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'UK inflation hits five-year high of 3%'
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  • One-Eye
    One-Eye Posts: 70,035 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    An increase in Bank Rate is now well overdue.

    The August 2016 cut from 0.5% to 0.25% was really an overreaction to Brexit scaremongering which would inevitably lead to inflation climbing and preventing the pound from strengthening. Euro bank rates are unchanged since March 2016 and in the USA the Fed has raised the US Base rate three times since December 2016 from 0.5% to the current 1.25%.

    The Bank of England should immediately raise the base rate to 0.5%, but I doubt they are brave enough to go any higher, although 0.75% would be much better, and would leave some margin to cut rates if required when we actually leave the EU.
  • Mr_K
    Mr_K Posts: 1,171 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Car Insurance Carver!
    Really beginning to love my NSI Index linked bonds a lot !
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 17 October 2017 at 11:43AM
    Mr_K wrote: »
    Really beginning to love my NSI Index linked bonds a lot !

    Ditto and I'm thinking all those who went for the 3 year renewal may be regretting that if, as seems possible, NSI decide not to renew if inflation keeps up like this.

    If you get the chance to renew, do so for the 5 years !
  • HornetSaver
    HornetSaver Posts: 3,732 Forumite
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    Glad to see that the Government is as usual very evenly sharing around the impact of the income squeeze and spending restraint.
  • Ectophile
    Ectophile Posts: 7,979 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    HornetSaver wrote: »
    Glad to see that the Government is as usual very evenly sharing around the impact of the income squeeze and spending restraint.

    Pensioners vote. Young people don't (or if they do, they vote Labour anyway). If you're a politician, you've got to know which people to keep happy.
    If it sticks, force it.
    If it breaks, well it wasn't working right anyway.
  • HornetSaver
    HornetSaver Posts: 3,732 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Combo Breaker
    Ectophile wrote: »
    Pensioners vote. Young people don't (or if they do, they vote Labour anyway). If you're a politician, you've got to know which people to keep happy.

    Because that worked a treat in 2017...
  • growler834
    growler834 Posts: 209 Forumite
    Eighth Anniversary 100 Posts Combo Breaker
    You state that 'Teachers’ pensions are now set to increase by 4.6% next year, while there's set to be a 4.5% rise for NHS workers and 4.25% for the police' however this is incorrect as we have been informed by the National Association of Retired Police Officers that the rise is 3% in line with CPI.
  • Consumerist
    Consumerist Posts: 6,311 Forumite
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    edited 18 October 2017 at 1:37PM
    This means pensioners can expect a 3% increase in the basic state pension next April, from £159.55 to just over £164.30 a week.
    That's funny, I thought basic SP was currently £122.30 pwk. for older pensioners.

    Edit
    According to my calculations 3% of £122.30 is around a £3.67 increase to £125.97 which will probably be rounded down to £125.95
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • xylophone
    xylophone Posts: 45,609 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I thought basic SP was currently £122.30 pwk. for older pensioners.

    Indeed.

    https://www.lovemoney.com/news/61140/how-much-state-pension-pay-2018-2019
  • colsten
    colsten Posts: 17,597 Forumite
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    Consumerist wrote: »
    That's funny, I thought basic SP was currently £122.30 pwk. for older pensioners.

    Edit
    According to my calculations 3% of £122.30 is around a £3.67 increase to £125.97 which will probably be rounded down to £125.95

    Basic SP is the old state pension, which is £122.30 (plus SERPS/S2P and/or contracted out payments)

    The £159.55 refers to the new SP, which most people who became eligible for state pensions after 5/4/2016 get (minus any contracted out payments).

    If this is unclear, please ask on the Pensions board.
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