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Rpi 4.7% cpi 3.3%
StevieJ
Posts: 20,174 Forumite
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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Comments
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A little disconcerting that one.:eek:
Even more worrying, & kinda highlighting the squeeze on households, especially with this story coming out yesterday:
http://www.bbc.co.uk/news/business-11985874
60% of business' planning to increase prices by more than the VAT rise :eek:It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
:beer::beer::beer:
Oh, this is the wrong type of cost of living going up!
Expect more, and worse, and not all of it will be due to VAT.0 -
Graham_Devon wrote: »Expect more, and worse, and not all of it will be due to VAT.
Yes, looks like Inflation is really going to take off!0 -
Bad news for anyone that eats, wears clothes or likes to keep the house warm.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Dear Ozzy.
Same s*!t different day.
Yours
Merv
PS - i got Cameron in the secret santa but im stumped for ideas - got any suggestions?0 -
Great news,
So with pay going up at about 2% and 'inflation' at 4.7. People's purchasing power is going down by 2.7% a year.
My question is, howcome the BOE has a remit, but simply cant be bothered to do anything about it.0 -
Great news,
So with pay going up at about 2% and 'inflation' at 4.7. People's purchasing power is going down by 2.7% a year.
My question is, howcome the BOE has a remit, but simply cant be bothered to do anything about it.
The BOE, and most likely loads of other people, are less concerned with interest rates, and probably more concerned that QE2 is simply slipping through their fingers.
It was the last tool in the toolbox. They put off using it, as they did the same each month and simply looked to see what was happening and did simply nothing, with those sat on the fence attacking those that actually had an idea, same with interest rates.
The gamble for QE2 went wrong, IMHO, and the gamble with interest rates is currently going wrong, again, IMHO.
I'm waiting for the good old line to explain this...
"It's temporary".0 -
The Government, BOE & most city economists were wrong on inflation again.
No surprise there then!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...0 -
Great news,
So with pay going up at about 2% and 'inflation' at 4.7. People's purchasing power is going down by 2.7% a year.
My question is, howcome the BOE has a remit, but simply cant be bothered to do anything about it.
The targeted measure of inflation is rising at 3.3% pa but the more general one you are correct to say is 4.7%pa.
It is hard to think of a policy that would reduce inflation and not reduce pay rises. After all, inflation is really just companies putting their prices up. If companies can't put their prices up it's hard to see where the money for pay rises would come from.
If the BoE were to put the squeeze on the economy by increasing interest rates, the chances are unemployment would increase. That would effectively increase the supply of labour and decrease its demand thus reducing the price of labour (wages) further. It would probably cut inflation (which is pretty low although above target) but would mean job losses and lower wages too most likely.0 -
Just as well I am earning a whopping 1.8% to 2.7% after tax on my various savings (losings) accounts then. I can stomach it though as I am a net borrower on trackers.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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