Annual inflation at just 0.1%.. or is it?

Wookster

http://business.timesonline.co.uk/tol/business/economics/article5750719.ece

Anxieties grew today that Britain’s economy could slide into the grip of deflation as a key gauge of price pressures showed annual inflation tumbling to just 0.1 per cent.
Inflation measured by the Retail Price Index (RPI) extended recent sharp falls in January, sliding to an annual rate of just 0.1 per cent, from 0.9 per cent in December, official figures showed.
The 0.1 per cent inflation rate for last month marked the lowest since March 1960.
However, the alternative consumer price index (CPI) on which the Bank of England targets inflation of 2 per cent, fell by less than expected and remained firmly in positive territory. It showed an annual inflation rate of 3 per cent for last month, down from 3.1 in December.

Why is that all of a sudden focus seems to be on the RPI rather than the CPI when interest rates should have been targetted at the RPI all these years? I guess that's because the falling RPI is what is going to 'justify' QE as a pathway to inflating debts away.

CPI stays firmly over the banks targetted measure at 3%.

Roll on a period of high inflation of imported goods and essentials and falling asset prices.

ad9898_3

I agree, inflation is nowhere near that figure, it's a con so that rates can be dropped and then the printing starts, all to inflate away peoples debts, at the cost of the prudent, it won't work though, it will just make things worse, as is usual with Clown.

tuggy12

Wookster wrote: »

http://business.timesonline.co.uk/tol/business/economics/article5750719.ece

Why is that all of a sudden focus seems to be on the RPI rather than the CPI when interest rates should have been targetted at the RPI all these years?

Yes, the BOE was given 'independence' to set rates while the going was good but it's now firmly back in political control.

lostinrates

Personally, inflation in this household is more.

And I'd guess thats the same for most people who take a train regularly.

Wookster

lostinrates wrote: »

Personally, inflation in this household is more.

And I'd guess thats the same for most people who take a train regularly.

And inflation of essentials is going to put further downward pressure on asset prices.

QE is the most disastrous thing that could be done now.

ad9898_3

So let me get this straight, we use CPI when inflation is going up, so we can keep interest rates low, then miraculously we use RPI when inflation is going down, to...... yes you've guessed it, to keep interest rates low. I believe CPI is 3%, Clown isn't just squeezing the prudent, savers, pensioners etc.. he's got their balls in a vice and is just spinning the handle ever tighter.:mad:

izzwizz_2

An item that we've recently purchased for our house has risen from £2000 six months ago when we first got quotes to £3000, due entirely to exchange rate fluctuations. Everywhere we go, firms are upping prices. The BoE has to be bonkers if they think that low interest rates and printing money are not going to result in huge inflation. We can only conclude that inflation is part of their solution...

purch

has risen from £2000 six months ago when we first got quotes to £3000, due entirely to exchange rate fluctuations

50% !!!!! ................ they are conning you !!! big time !!!!

ad44downey

Never has the phrase "lies, damned lies and statistics" been more appropriate. The official government inflation figure(s) has been a joke for years, they make it up as they go along.

mr.broderick

Wookster wrote: »

http://business.timesonline.co.uk/tol/business/economics/article5750719.ece



Why is that all of a sudden focus seems to be on the RPI rather than the CPI when interest rates should have been targetted at the RPI all these years? I guess that's because the falling RPI is what is going to 'justify' QE as a pathway to inflating debts away.

CPI stays firmly over the banks targetted measure at 3%.

Roll on a period of high inflation of imported goods and essentials and falling asset prices.

T'is a good story !!!!!!, they must think we are puddled.

Wookster

mr.broderick wrote: »

Agreed, in the morning depending on my mood i may be a big !!!!!! or a little one but you will definitely be !!!!!!.

Want to bet £5,000 on it?