CPI hits 4.4pct

mbga9pgf

What would inflation be sans the VAT rate rise?

StevieJ

Higher inflation = more savage public sector pay cuts and erosion of UK public sector debt, looks like Ozzie may hit targets.

blueboy43

StevieJ wrote: »

Higher inflation = more savage public sector pay cuts and erosion of UK public sector debt, looks like Ozzie may hit targets.

No!!!!

we need much higher interest rates to;

1) cool the booming economy
2) stop galloping house price inflation
3) curb the huge wage settlements that the unions are currently getting.

Oh hang in..............

gagahouse

mbga9pgf wrote: »

What would inflation be sans the VAT rate rise?

• The annual rate for CPI excluding indirect taxes, CPIY, is 2.8%, up from 2.4% last month.
• The annual rate for CPI at constant tax rates, CPI-CT, is 2.7%, up from 2.3% last month.

The annual rate for RPIY, the all items excluding MIPs and indirect taxes index is 4.1%, up from
3.8% last month.

chucky

mbga9pgf wrote: »

What would inflation be sans the VAT rate rise?

probably a little over half of what it is now.

inflation numbers are going to be skewed until the "VAT inflation" is taken out of the system.

LEO-3

In the private sector, wages are not keeping up with this. I normally get an RPI increase every April, I'm being awarded with just 3%. RPI is at 5.5% meaning I'm considerably worse off

BOE need to start acting fast, rates need to rise now. The cost of living is becoming almost unbearable.

£80 to fill up a family car is beyond a joke as is £3.40 for a box of rice crispies:mad:

Generali

LEO-3 wrote: »

BOE need to start acting fast, rates need to rise now. The cost of living is becoming almost unbearable.

£80 to fill up a family car is beyond a joke as is £3.40 for a box of rice crispies:mad:

How is increasing interest rates going to cut the price of petrol do you think?

lisyloo

How is increasing interest rates going to cut the price of petrol do you think?

It should strengthen sterling.
How do you think we buy oil? buttons? :-)

It will also reduce demand as borrowers will have less to spend so they will have to cut back on their driving.
This should also lower the price.

Generali

lisyloo wrote: »

It should strengthen sterling.
How do you think we buy oil? buttons? :-)

It will also reduce demand as borrowers will have less to spend so they will have to cut back on their driving.
This should also lower the price.

How much would you like the price of petrol reduced? Bear in mind that more than half the price of petrol is tax so you can only reduce the part that is not tax by increasing the value of sterling.

If you doubled the price of sterling vs USD and assume that the costs of transportation, storing and selling the petrol are all in USD then you'd knock 25% off the price of petrol. To do that you'd probably have to put up base rates to about 8-10% at a guess. That would mean the entire banking sector would be insolvent again and millions thrown out of work. Still you could fill your tank for £60 rather than £80.

This central banking lark might look like a couple of nights in a swanky hotel, a bit of a chat about the economic weather and then a vote on whether to keep rates at 0.5% or keep them at 0.5% but there may be a bit more to it than that.

LEO-3

Generali wrote: »

How much would you like the price of petrol reduced? Bear in mind that more than half the price of petrol is tax so you can only reduce the part that is not tax by increasing the value of sterling.

If you doubled the price of sterling vs USD and assume that the costs of transportation, storing and selling the petrol are all in USD then you'd knock 25% off the price of petrol. To do that you'd probably have to put up base rates to about 8-10% at a guess. That would mean the entire banking sector would be insolvent again and millions thrown out of work. Still you could fill your tank for £60 rather than £80.

Conservatives pledge pre election for a fuel stabilizer? Hopefully something on this tomorrow. The 1p rise in fuel duty will almost certainly be binned, but they need to do more and drop fuel duty too.

We need to make the £ stronger, the BOE commitee are a laughing stock.