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CPI hits 4.4pct
inspector_monkfish
Posts: 9,276 Forumite
09:43 22Mar11 - UK Feb public borrowing, CPI show shock rises
LONDON, March 22 - British public borrowing recorded its worst February since records began last month, and inflation surged more than expected to a 28-month high, official data showed on Tuesday.
The news comes as finance minister George Osborne puts the final touches to his 2011 Budget due on Wednesday, and is also likely to worry Bank of England policymakers trying to wrestle inflation back to its 2 percent target.
The Office for National Statistics said consumer price inflation rose to 4.4 percent in February from 4.0 percent in January, significantly higher than the 4.2 percent forecast by economists.
Higher housing costs, domestic heating bills and clothing prices drove the increase in CPI, the ONS said.
Retail price inflation, which is based on a longer-running index and is used as a starting point for many wage negotiations, rose to 5.5 percent from 5.1 percent, its highest since July 1991.
The ONS said that public sector net borrowing totalled 10.280 billion pounds in February, up from 8.105 billion pounds for the same month in 2010 and well above economists ' median forecasts of 8.0 billion pounds.
The government's preferred measure, PSNB excluding financial sector interventions, rose to 11.771 billion pounds. Both measures were the highest for a month of February since records began in 1993.
The figures mark a sharp turnaround from January, due to an unwinding of the exceptional receipts for self-assessed income tax received in that month.
For the financial year to date, PSNB-ex totals 123.508 billion pounds compared to 136.621 billion pounds at the same point in the 2009/10 fiscal year.
Only one month now remains of the 2010/11 fiscal year, in which the government expects to borrow 148.5 billion pounds -- equivalent to 10.0 percent of GDP -- down from 156.5 billion pounds in the 2009/10 fiscal year.
The government plans to virtually elininate the budget deficit over the next four years.
LONDON, March 22 - British public borrowing recorded its worst February since records began last month, and inflation surged more than expected to a 28-month high, official data showed on Tuesday.
The news comes as finance minister George Osborne puts the final touches to his 2011 Budget due on Wednesday, and is also likely to worry Bank of England policymakers trying to wrestle inflation back to its 2 percent target.
The Office for National Statistics said consumer price inflation rose to 4.4 percent in February from 4.0 percent in January, significantly higher than the 4.2 percent forecast by economists.
Higher housing costs, domestic heating bills and clothing prices drove the increase in CPI, the ONS said.
Retail price inflation, which is based on a longer-running index and is used as a starting point for many wage negotiations, rose to 5.5 percent from 5.1 percent, its highest since July 1991.
The ONS said that public sector net borrowing totalled 10.280 billion pounds in February, up from 8.105 billion pounds for the same month in 2010 and well above economists ' median forecasts of 8.0 billion pounds.
The government's preferred measure, PSNB excluding financial sector interventions, rose to 11.771 billion pounds. Both measures were the highest for a month of February since records began in 1993.
The figures mark a sharp turnaround from January, due to an unwinding of the exceptional receipts for self-assessed income tax received in that month.
For the financial year to date, PSNB-ex totals 123.508 billion pounds compared to 136.621 billion pounds at the same point in the 2009/10 fiscal year.
Only one month now remains of the 2010/11 fiscal year, in which the government expects to borrow 148.5 billion pounds -- equivalent to 10.0 percent of GDP -- down from 156.5 billion pounds in the 2009/10 fiscal year.
The government plans to virtually elininate the budget deficit over the next four years.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
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Comments
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Shock?
Still a massive underestimate0 -
Well at least inflation has been consistent... Consistently higher than expectations.
It is becoming harder and harder for the BoE to keep interest rates at their current level.0 -
"...significantly higher than the 4.2 percent forecast by economists."
No surprise there either.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 -
Oil N gas. no surprise really.0
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It is becoming harder and harder for the BoE to keep interest rates at their current level.
I'm sure the voting members on the committee don't find it that hard to vote "no rise". Harder for them to justify their decision though.
And what happened to the "blip" that Merv predicticted back in early 2010 ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Do the BoE have any credibility left, or have they decided secretly to just let inflation run away.0
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Do the BoE have any credibility left, or have they decided secretly to just let inflation run away.
I'll go for the second option (although I don't thik it's a secret).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Do the BoE have any credibility left, or have they decided secretly to just let inflation run away.
Andrew Sentance does and possibly one or two others. However Mr King has none and the BOE is now appears a joke. :mad::exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Rocketing inflation. YAY! Bulls win.0
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