RPI 4.4%; CPI 3.4%; BoE In Denial

DaddyBear

purch wrote: »

Yes.

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

Someone who clearly doesn't understand inflation. Are you aware that inflation was a major contributor to the 80's recession??

purch

Raising interest rates would make the pound more desirable from an investors prospective.

No it wouldn't.

The type and size of Investment flows required to achieve that are not influenced by what the BOE Base Rate happens to be on any given day.

The 'desirabilty' or not of GBP is based on far more complicated factors than that. I would have thought that the events of 1992 would have taught everyone that lesson once and for all !!!!

Raising the base rate at a time when we have barely emerged from a deep recession (and most beareos claim we havn't yet) would do little to make our Debt and GDP attractive to foreign investors.

StevieJ

DaddyBear wrote: »

Someone who clearly doesn't understand inflation. Are you aware that inflation was a major contributor to the 80's recession??

No that was Thatcher and her advisor

chucky

DaddyBear wrote: »

Someone who clearly doesn't understand inflation. Are you aware that inflation was a major contributor to the 80's recession??

the next few posts will see Mr D. Bear being schooled by le Purch

chucky

purch wrote: »

Raising the base rate at a time when we have barely emerged from a deep recession (and most beareos claim we havn't yet) would do little to make our Debt and GDP attractive to foreign investors.

and here is what many people that hope that interest rates will rise fail to understand...

StevieJ

angrypirate wrote: »

We import a lot more than we export and everything that we export relies on fuel for manufacturing which right now is only going up because of the weak pound. Interest rates need to go up.

But at the moment inflation is useful to reduce the debt, in those memorable words sung by Gina G

Ooh Aah.. Just A Little Bit

purch

Are you aware that inflation was a major contributor to the 80's recession??

Yes

Some people take everything SOOOOO seriously :eek:

jim83

Here's an interesting measure supplied by the ONS: Tax and Prices Index (TPI)

According to the ONS, this "shows how much taxpayers’ gross income needs to change in order to maintain their spending power after taking account of the tax that has been deducted as well as changes in prices."



Will be interesting how high this goes after the election.

JayScottGreenspan

HAMISH_MCTAVISH wrote: »

Yes.

From the article.....

Increasing petrol prices were an important factor in rising consumer prices, the Office for National Statistics 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.

The continuing impact of the rise in VAT, which went back up to 17.5% in January, and the effect of flat gas bills relative to this time last year, when they fell sharply, also contributed to the spike in inflation.

Analysts expect the rise in prices to be temporary.

Nothing to see here, move along.

Petrol is up a lot, so it's worth looking into.
However, the ONS are good enough to provide the CPI rate for all items excluding energy. It is 2.9%.

StevieJ

jim83 wrote: »

Here's an interesting measure supplied by the ONS: Tax and Prices Index (TPI)

According to the ONS, this "shows how much taxpayers’ gross income needs to change in order to maintain their spending power after taking account of the tax that has been deducted as well as changes in prices."



Will be interesting how high this goes after the election.

Just looks like a chart of RPI.