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CPI hits 4.4pct
Comments
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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:
Do you always expect a pay rise to cover tax increases (i.e. Vat)?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Personally I do now feel it is the time to act, buit not because I want my personal commodities reduced, because I think there is a risk of higher inflation becoming entrenched which isn't good for households, jobs, businesses and the general economy.
Yes, I am aware there is a great deal to it :-)
But it would be good for effectively trimming that public sector debt and public sector pay levels.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
My comments were meant in jest, not to be rude. I am very sorry that didn't come across to you.
The exchange rate impact on prices is often overstated. Like I say, if you double the pound then you can cut the price of an imported item when it hits Dover by 50%. Then to that you have a whole lot of other costs that have to be paid in sterling that are unaffected or little affected by the exchange rate changing (eg retail costs, financing, wages, profit).
I guess a not inconsequential part would be the profit mark up on that imported Chinese tat that we now seem so fond of.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
If Sterling is more attractive to investors then the £ rises relative to other currencies.
Temporarily....
But the primary mechanism for this to happen is through investor confidence in the strength of the underlying economy. Not because they can get 0.25% more interest on UK deposits. If your base rate rises tip your economy back into recession, the pound will fall again.If the oil price in $s (or whatever foreign currency) stays then same then we can buy more oil for our £s, so it's cheaper, but you know that.
.
True.
But 75% of the cost of petrol is Tax, and a certain amount reflects the costs of refining and corporate profit.
Only a small amount, say 15% or so, is the cost of the crude oil.
So if you want to reduce petrol prices by 10%.... You need to boost the pound by an absurd amount. Which would kill any chance of an export led recovery and rebalancing the economy towards manufacturing..“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Hamish,
You forgot to mention the main reason that most individuals don't want interest rates to rise. Many people won't try and balance out the pros and cons, they'll just look at their mortgage payements, or the value of their house, and say that interest rates shouldn't rise. The slightly cleverer ones will say that it will damagge the economy in some other way, so as to deflect the argument from their self interest (no pun intended).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »
Only a small amount, say 15% or so, is the cost of the crude oil.
At 127p per litre the product cost is around 34%.0 -
Not everyone is completely self-centered.so as to deflect the argument from their self interest
I have a 0.99% rate mortgage and I feel that rates should go up for the sake of the general economy (and I do appreciate that there is a lot to it).
Now you might think I'm wrong and I have no issue with opposing views, but it's certainly not a biased and self-centered opinion as it opposes my personal interests.0 -
Thrugelmir wrote: »At 127p per litre the product cost is around 34%.
Product cost of petrol or component cost of raw crude?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Not everyone is completely self-centered.
I have a 0.99% rate mortgage and I feel that rates should go up for the sake of the general economy (and I do appreciate that there is a lot to it).
Now you might think I'm wrong and I have no issue with opposing views, but it's certainly not a biased and self-centered opinion as it opposes my personal interests.
So why do you think you know more than the worthies on the rate setting committee? unless of course you are suggesting that they are all worried about their mortgage payments:)'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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