Halifax July Figures show slowdown in price falls

mrstinchcombe

"Minor correction" :rotfl:

Please stop your killing me! You are one funny fella!

PasturesNew

lol ... you can't help yourself can you.

You're addicted to making silk purses out of sows' ears. You could take that skill to the Up Your Income Board.

:P

keeprenting

mr.broderick wrote: »

July Halifax figures show month on month fall of 1.7%. This is less than June 1.9% and May 2.5%. Looks like the minor correction is slowing. With an interest rate cut looking likely next month i envisage even smaller falls in the next couple of months with small rises occuring before the end of the year.

Heh. Good windup.

Generali

chucky wrote: »

Raging inflation!?!? Have I missed something??

It's gone up but to say Raging Inflation!!!

You joker!!

On this board, 4% CPI (which is obviously the result of an international conspiracy anyway) is runaway inflation. 5% is hyperinflation. Any higher can reasonably be compared with Zimbabwe.

WTF?_2

The cost of home heating oil for my OFCH has almost doubled in a year. Diesel for my car is up 25% since the start of 2008. Most of the basic foodstuffs are up 10% or more on the year. Electricity/Gas bills are up (or going to be up shortly) from 10-40%

I'd call that raging inflation. Especially given that my salary has seen an increase of precisely 0% in the last year to compensate.

Luckily, houses are dropping ca 10% YoY so it's not totally bad news for my savings.

Paul_N_4

Generali wrote: »

On this board, 4% CPI (which is obviously the result of an international conspiracy anyway) is runaway inflation. 5% is hyperinflation. Any higher can reasonably be compared with Zimbabwe.

But as you say, CPI is a proxy for inflation, not actual inflation. What is the real inflation figure? Does our basket of goods truely reflect the country's inflation? Can we really compare our inflation to other country's when the basket of goods for each country is different?

The government are calling for wage restraint, and I understand that. But if inflation rises to say 5% over the course of a year, and then falls back to 2%, that 5% inflation has been locked in. A fall back to 2% doesn't mean prices have dropped to what they were before we saw the 5% inflation, it simply means things have stopped getting dearer, but the higher prices are still there.

So if wage demands are to remain subdued, the average person in this country is going to get noticably poorer over the next couple of years. But I suspect they have been getting steadily poorer for the last decade, we just haven't noticed so much because inflation has been relatively low, and we've been allowed to binge on debt. How long can it go on for?

ginvzt

Aren't summer to be a good time in the house sales and prices are usually higher than in winter? So, we are seeing the 'pick up' in the prices, just that it is still not positive! S, when autumn comes and people move less, the prices usually grow at the lower pace, isn't it so? So, translated in today's language, it means the drops would accelerate, no?

Paul_N_4

chucky wrote: »

Inflation currently sits around 3.8%, probably increasing to closer 5% next year.

So you have 100% faith that CPI measures the true cost of inflation in this country? What if the government decided to remove electricity bills, food costs, and fuel costs from CPI. Would you trust the CPI figure as being a true representation of inflation then? No? Then why do you believe it now?

WTF?_2

chucky wrote: »

Inflation currently sits around 3.8%, probably increasing to closer 5% next year. somehow your figures don't stack up.

I can assure you that my figures stack up perfectly well unless of course I've been hallucinating when I went to pay for my purchases. You do tend to notice when your heating oil tank fill rockets in price or you notice that diesel prices from from a quid at the start of the year up to 125p as now, or even higher recently.

As even you would understand and appreciate that some other prices must have dropped otherwise the Inflation rate would be closer to 20% by the 'figures' that you have posted.

'Even you must appreciate' that the headline CPI of 3.8% is a load of *******. Either that or you are seriously deluding yourself if you take government massaged figures over what things actually cost you in the shops. :rolleyes:

Your salary increase probably has more to do with your job performance instead of the state of the economy looking at the quantity of one-sided information that you constantly post on here...

It's always easy to spot the people whose argument doesn't have a leg to stand on when they get straight to the personal insults. :rolleyes:

I guess your savings must be doing really well with your imaginary inflation rate being so high - it will be worth peanuts in a few years.

I'm not at all pleased that my sterling savings cash is only attracting 6% interest which works out at something like 4.5% after tax (could be even less this year depending on the overtime). That barely compensates for the joke CPI figure and is less than the almost-as-badly-rigged RPI. Luckily my foreign currency savings are holding up rather better having benefited from the pound's slide on the FX markets.

WTF?_2

Paul_N wrote: »

So if wage demands are to remain subdued, the average person in this country is going to get noticably poorer over the next couple of years. But I suspect they have been getting steadily poorer for the last decade, we just haven't noticed so much because inflation has been relatively low, and we've been allowed to binge on debt. How long can it go on for?

You've hit the nail on the head.

People have been getting poorer in terms of actual wealth - but they have had easier access to ever-increasing amounts of credit which have more than compensated in terms of the lifestyle they have been living. Which of course is completely unsustainable.

Unfortunately, that easy access is getting a lot less easier and overall credit is constricting. Now the time is coming to pay it back which means many will have to live considerably below their means just as they have been living above them for so long. It's not going to be pretty.