CPI Up to 3.7% RPI Up to 4.8%

heno

lemonjelly wrote: »

Erm, obviously better bash up interest rates then? Cos that'll sort inflation out...;)

Not always. Unless they put them up a lot.

Kohoutek

Graham_Devon wrote: »

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

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.

It's the same mantra every month that raising UK interest rates will lower commodity prices that are set by global supply and demand pressures...

Rov

0.5% would make sod all difference to inflation, as Generali said above, the only way to reduce this current inflation would be to increase the interest rate to such an extent that it increased the value of sterling therefore reducing the imported costs, which is where much of this inflation is coming from.

Of course this risks damaging the recovery which wouldn't help the strength of sterling, so it needs to be done gradually. There is no quick fix, if there was they'd do it.

Really2

OK Oil,

Last year at this time oil was $75 Barrel with an exchange rate of $1.63 .

Oil is $98 and exchange is $1.6.

To get oil at the same cost we would now need an exchange rate of $2.13, that still does not take in to account then the VAT increase etc.

Anyone think we can make much of an inroad raising rates now?

doire_2

Dear David,

It just temporary and i will remain vigilant.

Yours

Mervyn

Kohoutek

OPEC quietly increases production (FT)

StevieJ

Rov wrote: »

0.5% would make sod all difference to inflation, as Generali said above, the only way to reduce this current inflation would be to increase the interest rate to such an extent that it increased the value of sterling therefore reducing the imported costs, which is where much of this inflation is coming from.

The Stg/USD exchange rate jumped just on the hint of a BR rise because of todays CPI data.

The Pound Dollar exchange rate has shot higher by 0.89% with 1 GBP = 1.6040 USD.

The market is still digesting the latest inflation data out of the UK, this exemplified by the increased volatility being experienced by pound exchange rates since the data release.

While the pound euro rate remains unchanged, albeit in a wide trading range, the pound dollar rate has decidedly moved highe

http://www.economy-news.co.uk/pound-dollar-18201101.html

StevieJ

Really2 wrote: »

OK Oil,

Last year at this time oil was $75 Barrel with an exchange rate of $1.63 .

Oil is $98 and exchange is $1.6.

To get oil at the same cost we would now need an exchange rate of $2.13, that still does not take in to account then the VAT increase etc.

Anyone think we can make much of an inroad raising rates now?

Actually it wasn't that long ago that the exchange rate was around $2.13, before the recession and the flight to the safety of the USD (bad call Schiffster )

A._Badger

Stagflation here we come.

Really2

StevieJ wrote: »

Actually it wasn't that long ago that the exchange rate was around $2.13, before the recession and the flight to the safety of the USD (bad call Schiffster )

It would be a good trick to do it now, we could lie about GDP and put base up to 5.75%, but we may get found out by the markets.:)