Think inflation worries are over?

Graham_Devon

Adebisi wrote: »

If we are all fatter does that not mean we can stop eating for a few months? Surely that is a great thing for saving cash.

Personally, I was using the excuse of having to be careful with money as an excuse to stuff my face with chipsticks and pickled onions as a comfort thing.

blakester

Graham_Devon wrote: »

Personally, I was using the excuse of having to be careful with money as an excuse to stuff my face with chipsticks and pickled onions as a comfort thing.

Chipsticks and pickled onions? I thought chocolate was the food for recession

LauraW10

I don't feel like my shopping has gone up 9%

Seriously, can someone explain to me why the BOE would reduce interest rates if inflation is on the rise? Surely this would just make them look stupid.

mewbie_2

LauraW10 wrote: »

Seriously, can someone explain to me why the BOE would reduce interest rates if inflation is on the rise? Surely this would just make them look stupid.

They don't target inflation at it's current rate. Oh no, that would be too easy to follow. No they target an unspecified point in time using advanced guesswork and an amount of political bias. It's far too clever for the likes of you and me.

lynzpower

LauraW10 wrote: »

I don't feel like my shopping has gone up 9%

Seriously, can someone explain to me why the BOE would reduce interest rates if inflation is on the rise? Surely this would just make them look stupid.

Mine also has not gone up 9% M&S cheaper than ever :T

It must be this eternl "basket" that we probably only ever get the milk out of- and nothing else.

Do try not to buy imported stuff as a rule though, so maybe thats why

Wookster

ad9898 wrote: »

Inflation is definately here in a lot of consumer goods, and in my opinion it's going to get a whole lot worse when Clown gives the QE order.

I really think we're in for an extended period where asset prices (equities/ properties) will deflate and essentials & imported goods will continue to inflate quite considerably.

Not a good situation to be in and yes, QE will make this worse.

tomterm8

LauraW10 wrote: »

I don't feel like my shopping has gone up 9%

Seriously, can someone explain to me why the BOE would reduce interest rates if inflation is on the rise? Surely this would just make them look stupid.

Because, whatever the legislation says, there are more pressing things at the moment than inflation. In fact, it would help tremendously if we could get inflation up to 6-7%.

Frankly, things look like an absolute disaster in eastern europe. Certain countries are suffering annual drops of 20-30% of GDP. And the wonks in the know have decided that the only option in town is to devalue our currency to give us a competative advantage abroad and devalue a large proportion of our debt.

We are in a debt-deflation scenario, and the only known cure is to inflate like crazy.

Wookster

tomterm8 wrote: »

Because, whatever the legislation says, there are more pressing things at the moment than inflation. In fact, it would help tremendously if we could get inflation up to 6-7%.

I fail to see how this would help. House prices desperately need to drop to long term average multiples. They are stupidly overpriced. They have been since 2005.

tomterm8 wrote: »

Frankly, things look like an absolute disaster in eastern europe. Certain countries are suffering annual drops of 20-30% of GDP. And the wonks in the know have decided that the only option in town is to devalue our currency to give us a competative advantage abroad and devalue a large proportion of our debt.

Which country is reporting a 30% annual drop in GDP?

tomterm8 wrote: »

We are in a debt-deflation scenario, and the only known cure is to inflate like crazy.

For inflation to really make a difference to debt we'd have to see inflation of >15% for 3 years. That would be enormously destructive to the economy.

lostinrates

My shopping has gone up. I buy pretty much the same shop for Mon-fri lunch every week, so I'm a depressingly stable guage.

Oysters have dropped in the supermaket from 51p back to 47p though.

itsnever2lateisit?

I am surprised food inflation is as low as 9%. It has certainly caused me to reign in elsewhere

Example Tesco own brand sunflower spread 54p last year 98p this