Inflation rises.

taxdodger

ha ha where is the deflation?
it's not happeninig and it never will.

brown is an !!!!!!!.


printing money as inflation rises what an !!!!!!!, him and mugarbee

KieranB

1) RPI fell to 0.0%

2) CPI is at 3.2% this is far too much above the Bank of England target of 2% and the media started panicing when it went above 3% for the first time. How can you be happy at it rising? Being too high also has a negative effect on the economy. It makes the real return on investments fall (especially as deposit interest rates are negligible) and it makes the real vale of your wages fall. You also have to fork out more money on the goods and services you purchase..

3) The government have no plans at all to actually print any money. They will be pumping money into the economy through other means though

taxdodger

No it is printing money.
It has no money to 'pump' in other than what it prints.It as obvious it would cause inflation.
Inflation is over 3% an rising - thats real bad news.

Everything is fooked.

john_s_2

It has no money to 'pump' in other than what it prints.It as obvious it would cause inflation.

Except that the quantitative easing (printing money to buy bonds) took place on 11 March, which is after the period the latest inflation figures cover (February).

http://news.bbc.co.uk/1/hi/business/7936319.stm

But a surprise to most nonetheless!

taxdodger

john_s wrote: »

Except that the quantitative easing (printing money to buy bonds) took place on 11 March, which is after the period the latest inflation figures cover (February).

http://news.bbc.co.uk/1/hi/business/7936319.stm

But a surprise to most nonetheless!

That was caused by devaluing the pound with low interest rates and by announcing his intention to print 'wealth'.

opinions4u

The CPI is clearly the better measure of true inflation.

Because the RPI includes taxation and interest costs, it is severely misleading.

Why are they so far apart? Because the government has cut VAT and interest rates. False measures that don't reflect a trip to the supermarket or electricals store.

As for applying RPI to pensions? What a farce. Most old people don't have mortgages. It would be absolutely right to have an OGPI as well in order to determine how little or how much pensions should rise by.

(The Old Gits' Price Index would include important items like Tena products and shopping trolleys in its make up, and exclude wide screen tvs).

Milarky

opinions4u wrote: »

As for applying RPI to pensions? What a farce.

In fact there is a modification; Old Age Pensions are uprated by the higher of the RPI or 2.5% so, if the worst comes to the worse and we do have a spell of 'deflation', OAPs will do rather better.