We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Will the real rate of inflation please stand up?
StevieJ
Posts: 20,174 Forumite
It appears that if we exclude Tory tax increases the rate of inflation is currently running at 2.5%, this with apparently astronomical food and fuel prices. Quite amazing really and no basis for the B.R. to rise, in fact next year when the oil and food prices flatten out and the tax rise falls out of the equation we could be looking at very moderate inflation figures.
http://www.statistics.gov.uk/pdfdir/cpi0411.pdf
http://www.statistics.gov.uk/pdfdir/cpi0411.pdf
'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 Thatcher
0
Comments
-
It appears that if we exclude Tory tax increases the rate of inflation is currently running at 2.5%,
True.this with apparently astronomical food and fuel prices.
Hardly.... Fuel is higher, but it's still around two thirds tax.
Food prices aren't that much higher in reality, and it's mostly supermarket profiteering rather than actual imported inflation.Quite amazing really and no basis for the B.R. to rise, in fact next year when the oil and food prices flatten out and the tax rise falls out of the equation we could be looking at very moderate inflation figures. deflation
Fixed that for you.
“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 is spot on in terms of food inflation, however my cashflow would suggest inflation is far higher than 2.5%.0
-
HAMISH_MCTAVISH wrote: »True.
Hardly.... Fuel is higher, but it's still around two thirds tax.
Food prices aren't that much higher in reality, and it's mostly supermarket profiteering rather than actual imported inflation.
Fixed that for you.
Actually I changed it myself from deflation
BTW profiteering or not they have increased. '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 -
Actually I changed it myself from deflation BTW profiteering or not they have increased.
Clearly the tax thing is a one off rise in costs and so is a change in the cost of living rather than inflation as such.
Food is a bit more interesting. A lot of the rise in food prices will be profiteering by the supermarkets and if you think it's bad there, try living in a country with only major 2 supermarket chains like Australia!
However, the farm gate price of most foods and other commodities has been rising quickly and that trend might continue as increasing numbers of previously extremely poor people find they are better off selling their labour to a factory and buying food than they are trying to grow their own.
Just a thought. Certainly deflation isn't out of the picture as the money supply continues to fall in the UK as measured by M4 and as we all know, "Inflation is in all places and at all times a monetary phenomenon*". The food thing is potentially interesting though.
*Terms and conditions apply0 -
HAMISH_MCTAVISH wrote: »True.
Hardly.... Fuel is higher, but it's still around two thirds tax.
Food prices aren't that much higher in reality, and it's mostly supermarket profiteering rather than actual imported inflation.
Fixed that for you.
Why if Tescos sell at the best price thy can can get is it profiteering, wheras if a homeowner sells for the best price they can get, it is market demand and supply?
Please explain the difference.0 -
So, when you exclude a bunch of stuff from the basket (and use the dodgy CPI basket in the first place) we've still got above, the everything-included, target inflation! Staggering!
PS. LBMA silver fix at another high today. Wonder why gold and silver are going to the moon? "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
Why if Tescos sell at the best price thy can can get is it profiteering, wheras if a homeowner sells for the best price they can get, it is market demand and supply?
Please explain the difference.
The housing market consists of 20 million or so individuals, none of whom have enough market share to impact anything.
The big 4 supermarkets control the vast majority of food sales in the Uk.
The big 8 banks control the vast majority of lending in the UK.
The big 6 electricity suppliers control the vast majority of utility supply in the UK.
Please explain why you don't see the difference?“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_MCTAVISH wrote: »The big 4 supermarkets control the vast majority of food sales in the Uk.
The big 8 banks control the vast majority of lending in the UK.
Plus you will never ever get planning permission to build an out of town supermarket unless you are a lawyer working for a large supermarket chain.
You can't open a bank as you won't be given a banking licence in a month of Sundays even if you had a million quid to put up in equity (the minimum reserves for a bank in the UK according to the FSA rules pre-Basle III).
<mutters>Don't get me started on corporatism....gah!.....</mutters>0 -
HAMISH_MCTAVISH wrote: »The housing market consists of 20 million or so individuals, none of whom have enough market share to impact anything.
The big 4 supermarkets control the vast majority of food sales in the Uk.
The big 8 banks control the vast majority of lending in the UK.
The big 6 electricity suppliers control the vast majority of utility supply in the UK.
Please explain why you don't see the difference?
But surely there are hundreds of thousands of suppliers of bread and baked beans, just the same as there are many house sellers. Are you saying that only a very large supplier can profiteer?0 -
Even a dominant supplier can only profiteer if he or she is selling direct, as soon as you're selling through a supermarket you'll have downwards pressure on prices.
Actually there aren't that many suppliers of baked beans anyway. It's probably low single figures. A better example is farmers selling vegetables, and it's fairly common knowledge that they get screwed on price precisely because there are a lot of them selling and the supermarket can dump any one of them and buy from the others.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards