MSE News: Inflation down to 3% ahead of Budget

Really2

DaddyBear wrote: »

SO RPI at 3.7%
Interest rates at 0.5%

Can anyone spot the deliberate mistake?

BOE use CPI?

Or that you are only relating base rate as a control of inflation and not economic stability?

StevieJ

DaddyBear wrote: »

SO RPI at 3.7%
Interest rates at 0.5%

Can anyone spot the deliberate mistake?

What had RPI got to do with Base Rate? BTW the interest rates on my savings accounts are a lot higher then 0.5%

Generali

jim83 wrote: »

Fortunately, CPI is also published with the effect of changes in indirect taxation stripped out.

CPIY

I think this is a very interesting graph. With the effect of tax increases removed, real prices plummeted last month as retailers did not immediately pass on the VAT rise to customers. This should correct at some point, and with that correction there will be a large jump up in the headline rate.

It's also worth noting that there was very little effect on core prices when all other indices fell during the period after 2008 Q3.

The BOE are, in my opinion, greatly understating the risk of inflation.

Thank you for posting this.

My belief is that deflation is a bigger risk than inflation (see the BoE M4 Money Supply figures).

The price level is rising right now, that is undeniable. However, that isn't the same thing as inflation, inflation being a persistent tendancy for prices to rise.

Time will tell which is correct. Clearly by 'printing' vast amounts of money there is an inflationary risk too.

mitchaa

Fuel duty going up by another 3p next week. That is going to hit everything hard either directly from filling your car, or indirectly by filling your trolley full of baked beans.

Really2

mitchaa wrote: »

Fuel duty going up by another 3p next week. That is going to hit everything hard either directly from filling your car, or indirectly by filling your trolley full of baked beans.

I wonder if they will freeze (delay) it tomorrow?
(please vote for us look what we saved you:))

kennyboy66_2

DaddyBear wrote: »

SO RPI at 3.7%
Interest rates at 0.5%

Can anyone spot the deliberate mistake?

When you next drive your car, just look out of the rear windscreen rather than the front one.

Let us know how you get on.

Milarky

Spot the switch from RPI to CPI in this discussion? RPI has 'overshot' CPI, so no more talk of 'deflation' (that never was)

Graham_Devon

Really2 wrote: »

I wonder if they will freeze (delay) it tomorrow?
(please vote for us look what we saved you:))

It's part of their calculations to half the deficit though.

They are already relying on optimistic growth of 3.5% to half the defecit in 4 years. Doing a U-Turn on one of tax too would leave them open to a lot of stick.

We'll see tommorow I guess, but not sure how they will be able to talk about halving the defecit, but also halt planned revenue.

Really2

Graham_Devon wrote: »

It's part of their calculations to half the deficit though.

They are already relying on optimistic growth of 3.5% to half the defecit in 4 years. Doing a U-Turn on one of tax too would leave them open to a lot of stick.

We'll see tommorow I guess, but not sure how they will be able to talk about halving the defecit, but also halt planned revenue.

Fags and beer increases. Sting the few to stop a problem of potential fuel strikes I would say is likely.

Don't forget when they planed it oil was nearly half what it is now. So revenue from the VAT aspect should be significantly up also.

immoral_angeluk

Inflation down to 3% ahead of Budget

/sarcasm

woo.

/end sarcasm