Inflation figures

kennyboy66_2

http://www.ft.com/cms/s/0/fcbf4122-b555-11dd-ab71-0000779fd18c.html

Consumer price inflation tumbled far more rapidly than expected in October to an annual rate of 4.5 per cent from 5.2 per cent the previous month, implying that prices may be falling even faster than recent estimates. Economists had expected annualised October inflation at 4.8 percent.

The Retail Price Index - an index which includes an element of housing costs and which most closely replicates what hits consumers’ wallets - rose by 4.2 per cent in October, down from the 5.0 per cent rate in September.

Must be some scrathing of heads to try and spin these figures into some kind of bad news.

FoxtonsRIP

If these figures were to be remotely credible, they'd need to be at least 10%. They aren't fooling anyone.

WTF?_2

kennyboy66 wrote: »

http://www.ft.com/cms/s/0/fcbf4122-b555-11dd-ab71-0000779fd18c.html

Consumer price inflation tumbled far more rapidly than expected in October to an annual rate of 4.5 per cent from 5.2 per cent the previous month, implying that prices may be falling even faster than recent estimates. Economists had expected annualised October inflation at 4.8 percent.

The Retail Price Index - an index which includes an element of housing costs and which most closely replicates what hits consumers’ wallets - rose by 4.2 per cent in October, down from the 5.0 per cent rate in September.

Must be some scrathing of heads to try and spin these figures into some kind of bad news.

It's better news than yet another rise in inflation, for sure.

So now that it's only 225% of the 2% target we can go ahead and cut rates again. That worked well last time, didn't it?

chucky

what great news - inflation has dropped by just over 15% :beer:

setmefree2

!!!!!!? wrote: »

It's better news than yet another rise in inflation, for sure.

So now that it's only 225% of the 2% target we can go ahead and cut rates again. That worked well last time, didn't it?

There's a lag between monetary stimulus (a drop in interest rates) and it's impact on the economy/inflation. Often as much as 9 months. I suspect you know that - but you wouldn't want fact to get in the way of another gloomy post would you?

Pounds holding up by the way - you must be so disappointed.

kennyboy66_2

!!!!!!? wrote: »

It's better news than yet another rise in inflation, for sure.

So now that it's only 225% of the 2% target we can go ahead and cut rates again. That worked well last time, didn't it?

I suspect you know that inflation will be tumbling all the way down to less than 1% in the next 6 months but find it hard to admit it, having endlessly gone on about stagflation, biflation and Weimar style inflation.

Cuting interest rates is the right response in a recession, and if sterling falls, then thats usually a good thing as well as long as the fall doesn't get out of control.

Try and think about the wider economy, lifes not just about house prices.

WTF?_2

setmefree2 wrote: »

There's a lag between monetary stimulus (a drop in interest rates) and it's impact on the economy/inflation. Often as much as 9 months. I suspect you know that - but you wouldn't want fact to get in the way of another gloomy post would you?

Yep, get in the digs. Why on earth would I want to post gloomy news? I post the news as I see it - it just so happens that it's overwhelmingly bad because the economy is totally screwed and set to get even worse.

Pounds holding up by the way - you must be so disappointed.

By 'holding up' you mean not plunging any more that it already has - it has dropped more than 10% against a basket of international currencies in just a month.

WTF?_2

kennyboy66 wrote: »

I suspect you know that inflation will be tumbling all the way down to less than 1% in the next 6 months but find it hard to admit it, having endlessly gone on about stagflation, biflation and Weimar style inflation.

Cuting interest rates is the right response in a recession, and if sterling falls, then thats usually a good thing as well as long as the fall doesn't get out of control.

Try and think about the wider economy, lifes not just about house prices.

There will undoubtedly be stagflation.

You seem to forget that in a deflation the theory is that ALL the money supply contracts. So even if inflation drops off, the fact is that people on average have less cash to spend. Goods might be cheaper, they aren't any more affordable unless you have savings.

With an average 10% more pounds needed to pay for imported goods in just the past month, you don't have to be Einstein to realise that anything imported is going to get relatively (relative to average income) more expensive irrespective of sticker price.


Perhaps if you weren't so fixated on cheaper mortgage repayments you might be able to think about the wider economy like you hypocritically tell me to do.

House prices have had it no matter what happens with interest rates. Only generalised strong inflation is going to give them a boost any time in the next 12 months. In the meantime the government is going on a wrecking spree in the cause of trying to restore 2007 (peak of credit bubble) levels of borrowing as a 'cure' for our economic ills - frightening. That's sheer madness, they are making the mess worse.

setmefree2

!!!!!!? wrote: »

it has dropped more than 10% against a basket of international currencies in just a month.

Good News all round then;)

setmefree2

!!!!!!? wrote: »

There will undoubtedly be stagflation.

Maybe - hopefully the last cut in interest rates will see the end of deflation. I'd rather have any type of inflation in preference to deflation.

WTF?_2

setmefree2 wrote: »

Good News all round then;)

I'm sure that people in the retail sector (a major component of the economy, for better or worse) whose jobs rely on getting consumers to buy all this imported stuff will be overjoyed.