Debate House Prices


We’re struggling at the moment with the huge volumes of messages we’re getting from Forumites about coronavirus and the impact it’s having on their finances. We’re a small team and we’re doing our best to manage this spike in demand. As a result, we’ve reluctantly decided to temporarily close the Debate House Prices & the Economy Board so that we can redirect our limited resources to those who need us most at this time.

Please do not post content intended for this board elsewhere in the forum – we appreciate your help and understanding during this exceptionally difficult time. It goes without saying, we hope to get back to full business as soon as possible!

MSE News: Inflation falls to lowest level since November 2004

edited 15 September 2009 at 10:03AM in Debate House Prices & the Economy
9 replies 110 views
Former_MSE_GuyFormer_MSE_Guy Former MSE
1.7K Posts
I've been Money Tipped! Newshound! Chutzpah Haggler
edited 15 September 2009 at 10:03AM in Debate House Prices & the Economy
This is the discussion thread for the following MSE news story:

"Inflation slid to its lowest level in almost five years during August, official figures showed today ..."



OfficialStamp.gif

Replies

  • edited 15 September 2009 at 9:50AM
    inspector_monkfishinspector_monkfish Forumite
    9.3K Posts
    edited 15 September 2009 at 9:50AM
    09:35 15Sep09 - UK inflation slows less than expected in Aug

    LONDON, Sept 15 - British consumer price
    inflation slowed less than expected in August as transport
    costs rose, partly offsetting a downward impact from utility
    bills and food prices, the Office for National Statistics said
    on Tuesday.
    *********************************************************

    CPI KEY FIGURES
    AUG JULY F'CAST
    CPI %YY 1.6 1.8 1.4
    RPI %YY -1.3 -1.4 -1.5
    RPI-X% YY 1.4 1.2 1.2

    KEY POINTS
    - Lowest annual CPI rate since January 2005
    - Lowest annual rate of food and non-alcoholic beverages
    inflation since June 2006
    - Lowest annual rate of services inflation since August 2006

    ANALYST COMMENTS:
    STEPHEN LEWIS, MONUMENT SECURITIES
    "Obviously it is not as good as expected and there is no
    tendency for core CPI rate of inflation to moderate which must
    be worrying to the MPC because it casts doubt on their
    forecasts. Looking at the components this month, we seem to have
    more of a bounce back in furniture and household equipment after
    seasonal July sales than is usual."
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • nicko33nicko33 Forumite
    1.1K Posts
    http://www.statistics.gov.uk/cci/nugget.asp?id=19

    CPI 1.6% down from 1.8%
    RPI -1.3% up from -1.4%
    RPIX 1.4% up from 1.2%
  • Isn't this the same headline every month ?

    "UK inflation slows less than expected in xxx"

    Also are benefits linked to RPI in Sept each year - do we expect to see them fall ?
    US housing: it's not a bubble

    Moneyweek, December 2005
  • lemonjellylemonjelly Forumite
    8K Posts
    1,000 Posts Combo Breaker Mortgage-free Glee!
    ✭✭✭✭
    Is this due to the increased prices of houses, fuel increases, or just general everything is going up stuff?

    I assume that this will have little/no bearing on the chances of interest rate increases?

    Why is it worrying for the MPC?
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • lemonjelly wrote: »
    Is this due to the increased prices of houses, fuel increases, or just general everything is going up stuff?

    I assume that this will have little/no bearing on the chances of interest rate increases?

    Why is it worrying for the MPC?




    09:30 15Sep09 UK AUG CPI ALL GOODS +0.6% YY, ALL SERVICES+2.9% YY, LOWEST SERVICES RATE SINCE AUG 2006

    09:30 15Sep09 ONS- BIGGEST DOWNWARD EFFECT FROM GAS, ELECTRICITY, FOOD; BIGGEST UPWARD IMPACT FROM TRANSPORT

    Sept 15 - The Office for National
    Statistics released the following consumer price indices:

    AUG JULY
    CPI (HICP)
    Mth-on-mth (pct) 0.4 UNCH
    Yr-on-yr 1.6* 1.8

    Core CPI (ex- energy, food,
    (alcohol and tobacco)
    Mth-on-mth (pct) 0.6 UNCH
    Yr-on-yr 1.8 1.8

    RPI
    Mth-on-mth (pct) 0.5 UNCH
    Yr-on-yr -1.3 -1.4
    Index 214.4 213.4

    RPIX (RPI ex-mortgages)
    Mth-on-mth 0.5 UNCH
    Yr-on-yr 1.4 1.2

    NOTE - Consensus forecasts: (in percent)
    mth/mth yr/yr
    CPI 0.3 1.4
    RPI 0.2 -1.5
    RPIX 0.2 1.2

    COMPONENTS OF CPI (pct):
    AUG YR/YR JULY YR/YR
    Food & non-alcoholic bevs -0.6 2.2** -0.4 4.1
    Alcoholic bevs & tobacco 0.4 4.1 0.3 4.1
    Clothing & footwear 1.3 -8.2 -3.2 -8.1
    Housing,water,elec,gas,fuels 0.2 3.3 0.1 5.2
    Furniture, hhold equip, main.1.5 3.0 -2.7 2.4
    Health 0.5 2.9 0.7 2.5
    Transport 1.6 0.3 1.7 -1.4
    Communication -0.1 1.2 UNCH 1.5
    Recreation & culture 0.2 1.8 0.1 2.0
    Education UNCH 8.6 UNCH 8.6
    Restaurants & hotels 0.1 2.0 0.1 2.0
    Misc. goods & services 0.1 2.0 0.4 2.1
    All goods 0.5 0.6 -0.6 0.7
    All services 0.4 2.9*** 0.7 3.1
    Fuels and lubricants 1.0 -10.0 0.7 -15.1
    RPI housing component 0.4 -11.2 0.4 -11.3
    * Lowest annual CPI rate since January 2005
    ** Lowest annual rate of food and non-alcoholic beverages
    inflation since June 2006
    *** Lowest annual rate of services inflation since August 2006
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • lemonjellylemonjelly Forumite
    8K Posts
    1,000 Posts Combo Breaker Mortgage-free Glee!
    ✭✭✭✭
    09:30 15Sep09 UK AUG CPI ALL GOODS +0.6% YY, ALL SERVICES+2.9% YY, LOWEST SERVICES RATE SINCE AUG 2006

    09:30 15Sep09 ONS- BIGGEST DOWNWARD EFFECT FROM GAS, ELECTRICITY, FOOD; BIGGEST UPWARD IMPACT FROM TRANSPORT

    Sept 15 - The Office for National
    Statistics released the following consumer price indices:

    AUG JULY
    CPI (HICP)
    Mth-on-mth (pct) 0.4 UNCH
    Yr-on-yr 1.6* 1.8

    Core CPI (ex- energy, food,
    (alcohol and tobacco)
    Mth-on-mth (pct) 0.6 UNCH
    Yr-on-yr 1.8 1.8

    RPI
    Mth-on-mth (pct) 0.5 UNCH
    Yr-on-yr -1.3 -1.4
    Index 214.4 213.4

    RPIX (RPI ex-mortgages)
    Mth-on-mth 0.5 UNCH
    Yr-on-yr 1.4 1.2

    NOTE - Consensus forecasts: (in percent)
    mth/mth yr/yr
    CPI 0.3 1.4
    RPI 0.2 -1.5
    RPIX 0.2 1.2

    COMPONENTS OF CPI (pct):
    AUG YR/YR JULY YR/YR
    Food & non-alcoholic bevs -0.6 2.2** -0.4 4.1
    Alcoholic bevs & tobacco 0.4 4.1 0.3 4.1
    Clothing & footwear 1.3 -8.2 -3.2 -8.1
    Housing,water,elec,gas,fuels 0.2 3.3 0.1 5.2
    Furniture, hhold equip, main.1.5 3.0 -2.7 2.4
    Health 0.5 2.9 0.7 2.5
    Transport 1.6 0.3 1.7 -1.4
    Communication -0.1 1.2 UNCH 1.5
    Recreation & culture 0.2 1.8 0.1 2.0
    Education UNCH 8.6 UNCH 8.6
    Restaurants & hotels 0.1 2.0 0.1 2.0
    Misc. goods & services 0.1 2.0 0.4 2.1
    All goods 0.5 0.6 -0.6 0.7
    All services 0.4 2.9*** 0.7 3.1
    Fuels and lubricants 1.0 -10.0 0.7 -15.1
    RPI housing component 0.4 -11.2 0.4 -11.3
    * Lowest annual CPI rate since January 2005
    ** Lowest annual rate of food and non-alcoholic beverages
    inflation since June 2006
    *** Lowest annual rate of services inflation since August 2006

    I'm gonna look at this for the next 6 hours, then post to see if I've come anywhere near understanding it!;):D
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • lemonjelly wrote: »
    I'm gonna look at this for the next 6 hours, then post to see if I've come anywhere near understanding it!;):D


    sorry, it doesn't paste very well !!
    Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
    (MSE Andrea says ok!)
  • lemonjellylemonjelly Forumite
    8K Posts
    1,000 Posts Combo Breaker Mortgage-free Glee!
    ✭✭✭✭
    sorry, it doesn't paste very well !!

    Don't worry about that, I'm grateful to you for sharing the information.

    Just gotta work out how to read it!;):cool:

    I bain't no city high flyer!
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • andyknandykn Forumite
    437 Posts
    Part of the Furniture Combo Breaker
    ✭✭
    lemonjelly wrote: »
    Don't worry about that, I'm grateful to you for sharing the information.

    Just gotta work out how to read it!;):cool:

    I bain't no city high flyer!

    It might be easier to read here:

    http://www.statistics.gov.uk/pdfdir/cpi0909.pdf

    What's complicating things is that prices were falling last year but are rising now. If you look at the rise in the index over the last 6 months, it's about 1.5% up, around 3% annualised. So, in theory, if nothing changes, annual inflation in 6 months will be 3%, over the 2% target.
This discussion has been closed.
Latest MSE News and Guides

Stoozing, sublets & summer sips

This week's MSE Forum highlights

MSE News

Martin Lewis quizzes Rishi Sunak

Watch the cost of living support Q&A here

Join the MSE Forum discussion

48 craft beers for £50 delivered

One-off bundle for newbies. Excludes Northern Ireland

MSE Deals