Inflation "To go above 3% soon" B o E

TREVORCOLMAN

I thought he was a good singer - I remember yoooooo!

:rotfl:

House_owner

The offical rate of inflation might be below 3%, but the increase in fuel costs, gas and electric prices etc is higher than this, and this is what affects the ordinary person, particularly those on a fixed income. Interest rates are bound to go up, so our mortgage costs will rise as well. All this while employers base pay increases on the offical rate of inflation

gozomark

House_owner wrote: »

The offical rate of inflation might be below 3%, but the increase in fuel costs, gas and electric prices etc is higher than this,

Not surprisingly, all of those items are included in the offical rate. Some things go up by more than the average, some less - that doesn't make the figures wrong. For example,

to Dec 2009, year on year - overall inflation was 2.9%

Transport +8.7% (presumably includes fuel)
clothing/footwear -3.5%
food/non-alcoholic bev +1.6%

Masomnia

tonyhamm wrote: »

Its certainly illuminating reading the blog of the only decent MP in the house of commons - Frank Field (Labour MP for Birkinghead).
He makes the point that such huge amount of raw funny money pumped into the UK economy will almost certainly result in sharp inflation.

Almost certainly is right. If you look at the M4 statistics for December, ie. the money supply, it actually fell about 1% month-on-month. So despite all the money we're pumping into the economy, there's still less of it floating around, no reason to believe QE will result in sharp inflation for the time being.