inflation at 1p per week

lemonjelly

on fuel....

http://news.uk.msn.com/uk/articles.aspx?cp-documentid=152644696

That is quite a significant rise for people to encounter.

& let us not forget that pretty much all goods & services need to be transported, so these costs are going to be passed on to consumers.

So suppose there is an inflationary risk.

However, I feel that this will limit or reduce consumer spending, which is likely to prolong recovery, making growth a lot slower (unless you're in the oil industry).

markharding557

Real inflation always has been much higher than the governments laughable figures.
Rapidly rising fuel prices were a major factor in the recession and it is certainly possible they could cause another dip.
The simple fact is more £s on fuel is less £s spent or saved elswhere

Graham_Devon

Fuel is just a commodity.

Strange that as it also hits the pockets of the VI's in housing, they aint coming to these threads saying it's just fantastic with their clappy hand icons.

Really2

Graham_Devon wrote: »

Fuel is just a commodity.

Strange that as it also hits the pockets of the VI's in housing, they aint coming to these threads saying it's just fantastic with their clappy hand icons.

ooh so you have no VI and are not in housing (housing forum).:p

It's fine by me at the moment I have got rid of the Alfa.

But it is compleatly unavoidable China's demand has increased by 28% recently. That has a bearing on cost.

But also it is naive to think oil increasing price is not also down to the world slowly creeping back in to growth.
China can be used as a barometer of world demand now.

Thrugelmir

lemonjelly wrote: »

on fuel....

http://news.uk.msn.com/uk/articles.aspx?cp-documentid=152644696

That is quite a significant rise for people to encounter.

& let us not forget that pretty much all goods & services need to be transported, so these costs are going to be passed on to consumers.

So suppose there is an inflationary risk.

However, I feel that this will limit or reduce consumer spending, which is likely to prolong recovery, making growth a lot slower (unless you're in the oil industry).

The current Government has put measures to increase fuel duty by 1p plus inflation on the 1st April 2011 and 2012 and 2013.

Then there's VAT that will be charged on top of the duty.

For those businessess dependent on transport in any form this is a major burden to bear.

As this cost passes onto customers through the supply chain, this will result in higher prices for a huge range of products and services. I'm already encountering issues with the supply of certain products to remote locations where companies regard delivery as being uneconomic.

lemonjelly

Thrugelmir wrote: »

The current Government has put measures to increase fuel duty by 1p plus inflation on the 1st April 2011 and 2012 and 2013.

Then there's VAT that will be charged on top of the duty.

For those businessess dependent on transport in any form this is a major burden to bear.

As this cost passes onto customers through the supply chain, this will result in higher prices for a huge range of products and services. I'm already encountering issues with the supply of certain products to remote locations where companies regard delivery as being uneconomic.

Exactly the point I'm trying to highlight thrugelmir. Thanks for putting it so well.:)

To my mind, this could:
stifle growth
create inflationary pressure
place a significant cost burden on businesses & families
reduce disposable income
and so on.

Thrugelmir

lemonjelly wrote: »

Exactly the point I'm trying to highlight thrugelmir. Thanks for putting it so well.:)

To my mind, this could:
stifle growth
create inflationary pressure
place a significant cost burden on businesses & families
reduce disposable income
and so on.

But its also a central plank of Labour's 4 year debt reduction programme.

Sapphire

Don't suppose these rises have anything to do with the Peak Oil issue (which I believe is being hidden from the public)?

nearlynew

Inflation is not something that "just happens"

It is a direct result of our fraudulent debt-based money system and is designed to systematically steal from you.

.............................Inflation is theft

Cleaver

nearlynew wrote: »

.............................Inflation is theft

Ahh, I've missed that one. Classic. Can we have a quick 'debt is not wealth' in big, red font too? Just for old times sake?

Euphoria1z

when was inflation "invented" and what was the reason behind it?