RPI 4.4%; CPI 3.4%; BoE In Denial

Really2

Well I have had a bit of wage inflation confirmed 3%:j

So In theory I am worse off but I am happy with that in the current climate.

But the only way I can see inflation taking off is if we get a lot of wage inflation. That does not seem to be happening at the moment.

Really2

mitchaa wrote: »

Up up up

Savers have been shafted too long

Not those on fixed rate mortgages then.;):)

jim83

Really2 wrote: »

Perhaps they will do nothing until it is above what they have predicted?

BOE fan charts are worse than useless. They have not predicted anything. These charts merely show immediate inevitability (when that particular chart was released, it was pretty much impossible for CPI not to move up like that) then reverting to target.

That chart says we should be seeing slowing growth at the moment. There is no sign of that now or in the near future.

Expected it to be revised in the May release - as always. They will push the move back down back a quarter or two.

lemonjelly

Really2 wrote: »

Well I have had a bit of wage inflation confirmed 3%:j

So In theory I am worse off but I am happy with that in the current climate.

But the only way I can see inflation taking off is if we get a lot of wage inflation. That does not seem to be happening at the moment.

To be honest with you, right now wage inflation is less of an issue for me.

Job security on the other hand. More of an issue...

kennyboy66_2

1) Inflation ticking along nicely. Helps the deficit while we all become a little poorer (which would happened anyway).

2) Unemployment probably peaked

3) Deflation threat receding

4) Economy growing

5) Trade deficit shrinking

Things not quite as bad as they could have been.

GDP & borrowing stats out later this week as well.

BigJonnyB

student loan interest is set on the rpi figure (4.4%) for March which is going to give a lot of people a bit of a shock. That interest is going to be significantly higher than any savings account for the first time.

It would be nice if they took last years -0.4% off it to honour their promise that people would never pay more than the rate of inflation, since they froze it at zero when inflation was -0.4%. But that wont happen, and so the promise that the loans would never increase by more than inflation will have been broked...there's a suprise!

chucky

purch wrote: »

Inflation at these levels surely say's that the Recession is well and truely behind us.

here's the thing that a few people on here don't realise related to this - in real terms we will all porbably be poorer but those hoping for nominal house price falls are mistaken.

those hard earned house deposits are being eroded by inflation making them less effective as time goes on...

michaels

I was wondering how much of the necessary adjustment in real wages had been carried out 'invisibly' through the depreciation of sterling and tax increases compared to Eire where it is having to happen via real wage and benefits cuts. GBP is down about 25% vs USD over 2 years suppose this had not happened how much cheaper would internationally priced products be now (petrol, tvs food etc) and would we actually be in a deflationary spiral. Of course it has not been painless, the purchasing power of incomes has been hit but general goods price deflation means we have generally seen prices being static instead of falling but we are feeling it in fuel and heating costs and of course when abroad. May not be painless but it certainly feels easier than the EUR economies are having to suffer.

kennyboy66 wrote: »

1) Inflation ticking along nicely. Helps the deficit while we all become a little poorer (which would happened anyway).

Lokolo

BigJonnyB wrote: »

student loan interest is set on the rpi figure (4.4%) for March which is going to give a lot of people a bit of a shock. That interest is going to be significantly higher than any savings account for the first time.

It would be nice if they took last years -0.4% off it to honour their promise that people would never pay more than the rate of inflation, since they froze it at zero when inflation was -0.4%. But that wont happen, and so the promise that the loans would never increase by more than inflation will have been broked...there's a suprise!

It can never be more than 1% of the Base Rate. So we can hope the base rate stays this low for the next year and half.

Although I can't see that happening.

Kohoutek

Higher petrol prices were an important factor in rising consumer prices, the Office for National Statistics (ONS) said.

Petrol prices have been rising because of the relative strength of the dollar and higher refining costs, as well as the increasing price of oil.

Given that, why do people think this inflation rise is a sign the economy is healthier? You'd need to know whether UK oil inventories are lower/consumption is higher to know whether high prices are reflective of higher demand in the UK. The surge in demand for oil is coming from Asia, not the UK.