We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Inflation up again CPI 3.2% RPI 4.5%

2

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    de1amo wrote: »
    Does this mean that things like benefits and old age pension will increase next year because the Nov figures are used to calculate the new rates?

    Isn't it the September figure? I'm not sure though.
  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 16 November 2010 at 1:02PM
    Inflation up again...

    No surprise there.
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    No surprise they pulled the NS&I index-linked! They knew policy is to let inflation rip to reduce the real level of public debt.
  • de1amo
    de1amo Posts: 3,401 Forumite
    1,000 Posts Combo Breaker
    Generali wrote: »
    Isn't it the September figure? I'm not sure though.
    it would be more logical because call me synical but the month they do their figures on they have tended to suppress prices and the month after jumps like this happen!!
    mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.
  • Mr_Mumble
    Mr_Mumble Posts: 1,758 Forumite
    edited 16 November 2010 at 3:16PM
    No poking fun at deflationistas this month, they deserve sorrow & pity as true believers would be penniless shorting inflation-linked gilts and TIPS.

    Real interest rate chart back to 1975:
    http://img339.imageshack.us/img339/2953/realir.gif

    Takeaways:

    1. Savers are being screwed harder than at any time since 1980.
    2. Anyone saving for a deposit in the 80s and 90s had it easy.
    3. Blighty was messed up in the mid-70s.
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Mr_Mumble wrote: »
    Real interest rate chart back to 1975:
    http://img339.imageshack.us/img339/2953/realir.gif

    Takeaways:

    1. Savers are being screwed harder than at any time since 1980.
    2. Anyone saving for a deposit in the 80s and 90s had it easy.
    3. Blighty was messed up in the mid-70s.

    The whole graph is a great example that having a high base rate does not mean you get a better return on savings.
    It is all relative to inflation, In 1980 the base rate was 16% yet in real terms saving rate was -5%.:eek:
  • michaels
    michaels Posts: 29,223 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Really2 wrote: »
    The whole graph is a great example that having a high base rate does not mean you get a better return on savings.
    It is all relative to inflation, In 1980 the base rate was 16% yet in real terms saving rate was -5%.:eek:

    And not only that but with high inflation and interest rates the govt taxes much more of an illusionary interest 'income'
    I think....
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    BOE must be getting tetchy. I realise they are not going to put rates up quickly and this is their preferred route, but a lot of eyes will be on them asking questions. Media are already at it.
  • Procrastinator333
    Procrastinator333 Posts: 1,694 Forumite
    Graham_Devon wrote: »
    BOE must be getting tetchy. I realise they are not going to put rates up quickly and this is their preferred route, but a lot of eyes will be on them asking questions. Media are already at it.

    Personally I think they can get away with it for 1 more quarter. If the next set of GDP is pointing to annual growth of over 2.5%, I think they will start with the interest rate rises.

    If it falls off again, there is their excuse and it will go on.
  • michaels
    michaels Posts: 29,223 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    And perhaps that is the right policy?
    Procrastinator333 wrote: »
    Personally I think they can get away with it for 1 more quarter. If the next set of GDP is pointing to annual growth of over 2.5%, I think they will start with the interest rate rises.

    If it falls off again, there is their excuse and it will go on.
    I think....
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture