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More pressure on IRs
Orpheo
Posts: 1,058 Forumite
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Sorry, but these figures won't put pressure on IRs.0
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not another thread... economics 101 needed again
inflation doesn't need to be dealt with by increasing BoE interest rates...
they may want it to remain at the level that it is or even use other measures to deal with it.0 -
Another reasonable headline would be, "Inflation above target range by smallest reported increment'.
It's also worth remembering/realising that the rise in VAT from 15% to 17.5% would have increased inflation by roughly 1.2 percentage points being the entirety and a little bit more of the inflation overshoot (about half of purchases attract a VAT payment thus an increase in VAT of 2.5% would increase inflation by 2.5% x 1/2).0 -
Another reasonable headline would be, "Inflation above target range by smallest reported increment'.
It's also worth remembering/realising that the rise in VAT from 15% to 17.5% would have increased inflation by roughly 1.2 percentage points being the entirety and a little bit more of the inflation overshoot (about half of purchases attract a VAT payment thus an increase in VAT of 2.5% would increase inflation by 2.5% x 1/2).
Now don't use logic on YoY figures, it never goes down well.:)
You should put a sticky on this reply for next year also.0 -
More pressure on IRs
I think a full explanation from the OP is required.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Another reasonable headline would be, "Inflation above target range by smallest reported increment'.
It's also worth remembering/realising that the rise in VAT from 15% to 17.5% would have increased inflation by roughly 1.2 percentage points being the entirety and a little bit more of the inflation overshoot (about half of purchases attract a VAT payment thus an increase in VAT of 2.5% would increase inflation by 2.5% x 1/2).
Your posts always give me a nice warm feeeling, Generali.
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STR frother at its best0 -
RenovationMan wrote: »Your posts always give me a nice warm feeeling, Generali.
HTH.
My big fear for your punt is that if inflation starts to rise then it could just leap away and really spoil your day. I think it's very unlikely with unemployment and M4 growth where they are.0 -
HTH.
My big fear for your punt is that if inflation starts to rise then it could just leap away and really spoil your day. I think it's very unlikely with unemployment and M4 growth where they are.
I hope so. All the indicators (apart from those used to cause alarm to sell newspapers or those used to cause excitement on the dumbed-down BBC) seem to suggest that we will have low rates at least until the BoE and Government see what impact the austerity measures have in the new year, especially the VAT rise.
As we all know, tax hikes are just as effective as interest rate rises in reducing inflation and the BoE wont want to use the IR 'Big Stick' just as the government pull out the tax 'Big Stick', between them they would batter the economy back into recession, perhaps even into a depression.0 -
Another reasonable headline would be, "Inflation above target range by smallest reported increment'.
It's also worth remembering/realising that the rise in VAT from 15% to 17.5% would have increased inflation by roughly 1.2 percentage points being the entirety and a little bit more of the inflation overshoot (about half of purchases attract a VAT payment thus an increase in VAT of 2.5% would increase inflation by 2.5% x 1/2).
From my point of view every month things get more expensive and every month the government comes up with some reason why it doesnt count.
Its only because of tax, VAT, the end of the scrappage scheme, wheat prices, air fares, peak oil, strikes in the Yukon, etc...0
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