CPI Up to 3.7% RPI Up to 4.8%

Really2

lemonjelly wrote: »

Or richer, depending on [STRIKE]how, & on what we prioritise[/STRIKE].:)

if you work in the treasury.:)

Graham_Devon

Don't worry, it's just temporary.

On a personal level, believe we will see rates rise sooner than anticipated now. The pressure from the media and elsewhere is going to get higher, and the usual mantra of "its temporary" is starting to wear thin.

I don't think we should try and make this out to be minimal. It's larger than any expectations, and verging on dangerous levels now with current legislation (not my words). It's also not just made up of fuel and external factors. It includes insurance, travel, travel insurance, food etc.

Really2

Graham_Devon wrote: »

The pressure from the media and elsewhere is going to get higher, and the usual mantra of "its temporary" is starting to wear thin.

Yes, because people are not getting pay rises must mean it is permanent.
The more people go on about people getting less in real terms the more sense the BOE stance of their being slack in the economy rings true.
If not employers would be forced to pay more, that would then cause the BOE to act.

I think rates may go up 0.25% or 0.5% this year, but it will do nothing to inflation and will just be a reaction to prove to everyone it is not caused by monetary policy.

Graham_Devon wrote: »

It's also not just made up of fuel and external factors. It includes insurance, travel, travel insurance, food etc.

Insurance? Changing the base rate does not lower insurance scams.
Travel? is that not fuel
travel insurance? Is that not down to weather and volcanoes? How does the base rate make it cheaper?
Food? Crop failures and also effect by fuel. It's going up this year and no amount of base rate change will change the fact.

CloudCuckooLand

http://www.bbc.co.uk/news/uk-england-manchester-12156331

Some unions already think they need above 3.5% pay rise to keep their members happy.

More headlines like today's will increase pressure on pay settlements.

In trying to help workers offset inflation, the Union(s) could inadvertently add to and/or perpetuate inflation.

Graham_Devon

Really2 wrote: »

Yes, because people are not getting pay rises must mean it is permanent.
The more people go on about people getting less in real terms the more sense the BOE stance of their being slack in the economy rings true.
If not employers would be forced to pay more, that would then cause the BOE to act.

I think rates may go up 0.25% or 0.5% this year, but it will do nothing to inflation and will just be a reaction to prove to everyone it is not caused by monetary policy.

Insurance? Changing the base rate does not lower insurance scams.
Travel? is that not fuel
travel insurance? Is that not down to weather and volcanoes? How does the base rate make it cheaper?
Food? Crop failures and also effect by fuel. It's going up this year and no amount of base rate change will change the fact.

As I say, it's the same mantra every month.

The same outcome every month, which appears to be "its ok, lets do nothing".

That's what we did before the housing bust. Nothing. It's verging on dangerous levels, getting harder to reign in for every month that passes.

No ones talking about putting interest rates up to high levels, just ending the extreme low levels.

I don't think we can simply continue to just simply do nothing and observe. We've done that. We've observed if we do that, inflation just keeps on increasing.

No point in us arguing about it. I've said inflation is going to increase since last year, probably before that. Let's see what the BOE and others say, and do. I think the option of nothing has now passed, and probably passed about 4 months ago, at least.

Really2

Graham_Devon wrote: »

As I say, it's the same mantra every month.

The same outcome every month, which appears to be "its ok, lets do nothing".

That's what we did before the housing bust. Nothing. It's verging on dangerous levels, getting harder to reign in for every month that passes.

No ones talking about putting interest rates up to high levels, just ending the extreme low levels.

I don't think we can simply continue to just simply do nothing and observe. We've done that. We've observed if we do that, inflation just keeps on increasing.

No point in us arguing about it. I've said inflation is going to increase since last year, probably before that. Let's see what the BOE and others say, and do. I think the option of nothing has now passed, and probably passed about 4 months ago, at least.

So what rates do you think the UK can sustain/cope with to get CPI down to 2%? Not talking mortgages, but about business and the markets accepting it as not detrimental to our economy.

I see you ignored my points about insurance, travel food etc.;)

The bold bit, I think you will find out we did react before the housing bust we raised base to 5.75% it strated of the bust and the outlook to gental deflation to full bust???

Did oil prices turn out to be a bubble then like some were saying in the BOE? did they react to the headless chickens then, I think they know all to well what baying to the frothers does.
Between august 2006 and July 2007 we put it up 1%, by the time we started cutting the last hoorah was happening.

Hectors_House

Really2 wrote: »

That is a great example of what some of us have been saying. Because people will have less in real terms it means people will not use expensive services etc. So they will have to either cut costs or fail.

It certainly is 12 months where we will all feel a fair bit poorer.

Yes, unfortunately my hairdresser seems to have been oblivious to the change in the economic climate going on around him this past couple of years and has even increased his prices more then once in one year.

I was just waiting to see what my expected pay increase was likely to be and, sure enough the city-centre hairdresser has now become a luxury I cannot justify.

I take on the comment about the only way to get a good increase is to move jobs. Unfortunately our company does not look kindly on folks who do this throughout their career and I do actually quite like my job. LOL!

I will be pushing hard for a better increase then whatever I'm offered as (like many of you out there) I've worked very hard this year and think I have added enough to my dept to deserve the consideration.

JonnyBravo

Graham_Devon wrote: »

It's verging on dangerous levels, getting harder to reign in for every month that passes.

Don't worry Graham, EMED will see us right. Just pull up the ladder behind you will you ol' chap.

Graham_Devon

Really2 wrote: »

The bold bit, I think you will find out we did react before the housing bust we raised base to 5.75% it strated of the bust and the outlook to gental deflation to full bust???

What I meant by "thats what we did before the bust" wasn't about interest rates, but wider policy. We let something go, did nothing.

As for your other points, we've gone over them ad infinitum.

Facts are, we keep going over them, and meanwhile, inflation keeps rising. All I can gather is that your solution is to do nothing. It's ok. Leave it.

I don't agree, and going over the same points every week is getting boring

Really2

Hectors_House wrote: »

I take on the comment about the only way to get a good increase is to move jobs. Unfortunately our company does not look kindly on folks who do this throughout their career and I do actually quite like my job. LOL!

I will be pushing hard for a better increase then whatever I'm offered as (like many of you out there) I've worked very hard this year and think I have added enough to my dept to deserve the consideration.

I don't entirely agree with people who say that as it is not an option for many TBH.
We are going to have a year of real term wage falls, the economy is shaky, we have put tax up and oil and food have increased.
We are inbetween a rock and a hard place, we are all going to be taking the same medicine this year of falling disposable income.