UK Inflation CPI 4%, RPI 5.1%, Real 6.6%, Pressure Building on Wage Price Spiral

smeagold

UK Inflation for January 2011 leapt to CPI 4% from 3.7%, leaving the Bank of England Governor, Mervyn King to press print on another letter full of worthless excuses as to why high Inflation is still temporary more than a year on. The facts are that the Bank of England via its policy of HIGH Inflation is destroying a lifetime of accumulated capital of savers, as interest earned on savings after tax will be lucky to be at HALF the official inflation rate, never mind the actual inflation rate that is nearer to 6.6%, all as part of the continuing programme for the transference of wealth from tax payers and savers onto the balance sheets of the bailed out banks that generate fictitious profits on the basis of which billions are paid out in bonuses

The more widely recognised measure of Inflation RPI stood at 5.1% and real inflation at 6.6%, as the official inflation indices have been systematically doctored to under report real inflation by successive governments for several decades resulting in serious and compounding under reporting of the real rate of inflation as experienced by the British population.

The Bank of England MPC members continue with their mantra of temporarily high inflation due to short term factors. One could cut and paste from any inflation statement from MPC members of the past 12 months to hear the same propaganda out of the Bank of England. The question everyone should be asking the BoE is when does temporary high inflation stop being temporary? Originally it was for a couple of months, now it is over a year, will high inflation still be temporary a decade from now? For that is how long I expect the Inflation Mega-trend to run.

The gold fish memory broadcast and mainstream media fed by ivory tower academic economists continues to tow the line of temporarily high inflation by focusing on core inflation that excludes, food and energy costs because off course everyone in the UK has stopped feeding or heating themselves. Despite that fact that food and energy are far more relevant to the British population than for instance the price of a 50 inch Plasma Screen

http://www.marketoracle.co.uk/Article26314.html

nearlynew

The real "remit" of the bank of england is not to curb inflation but to crank it up.

More spin, more bullsh1t, more theft.


It is all they know.

Loughton_Monkey

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So could they be lying?

rich744

This is so clever. This is a theft by stealth. A raid on all those prudent risk adverse savers who keep their funds in cash accounts..

As the OP states this is a transference of wealth from the prudent to bail out the reckless........

smeagold

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens and it does so in such a way that not one man in a million can discern . John Maynard Keynes

Your being robbed, and the BoE is aiding and abetting.

michaels

Savers would lose a lot more in the pound with default than they are with the bail out.

Inflation is still historically low, anyone would think it was 20% not 4%

rich744 wrote: »

This is so clever. This is a theft by stealth. A raid on all those prudent risk adverse savers who keep their funds in cash accounts..

As the OP states this is a transference of wealth from the prudent to bail out the reckless........