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CPI rises to 4.5%
HAMISH_MCTAVISH
Posts: 28,592 Forumite
Mostly on the back of increased energy costs and tax rises on alcohol, tobacco, etc.
“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”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »Mostly on the back of increased energy costs and tax rises on alcohol, tobacco, etc.
In other words - no need to increase interest rates ?
So, inflation of what, exactly, is needed for the BoE to react ?
Property ? No.
Energy ? No.
Booze ? No.
Fags ? No.
Food ? Maybe...... erm No, because food costs are related to energy costs.
MP3/DVD players ? Yes !!!! "But if you look at the cost of DVD players, they are cheaper than they were 10 years ago, so no need to increase interest rates.
So, if you don't eat, smoke, drink, litsen to music, drive a car, have electricity/gas in you home, but have a mortgage, then it's good to see the BoE are looking after you.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Something strange:RenovationMan wrote: »From the BBC:
The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month.
CPI is now at its highest level since October 2008.
I see nothing here to convince me that raising interest rates will help reduce inflation based on the above.
Prices (to March!) as reported last month rose by 4% (compared to 4.4% in February).
That was all that was needed to get all those same city 'experts' to stop calling for a rate rise at May's meeting - the one we had all been led to expect by heavy hint dropping in the press until the last minute.
Inflation figures in April were released a week earlier than usual - the second Tuesday rather than the third . By coincidence, these figures were 'unexpectedly' good and suddenly we were 'out of trouble'
A month later and CPI flips back up (to 4.5% from 4.4% just two months earlier) but, now, a rate changing decision is already set back until at least November.
[Hmmm - a textbook example of public manipulation?].....under construction.... COVID is a [discontinued] scam0 -
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Something strange:
Prices (to March!) as reported last month rose by 4% (compared to 4.4% in February).
That was all that was needed to get all those same city 'experts' to stop calling for a rate rise at May's meeting - the one we had all been led to expect by heavy hint dropping in the press until the last minute.
Inflation figures in April were released a week earlier than usual - the second Tuesday rather than the third . By coincidence, these figures were 'unexpectedly' good and suddenly we were 'out of trouble'
A month later and CPI flips back up (to 4.5% from 4.4% just two months earlier) but, now, a rate changing decision is already set back until at least November.
[Hmmm - a textbook example of public manipulation?]
If there's anyone still out there for whom the penny has not dropped:
High inflation = less debt to pay off
It's all part of a very transparent plan.
The tricky part of the plan is that the BoE has to convince everyone that interest rate rises are not necessary to lower inflation because [insert your Merv excuse here].
So far so good. Unless you've STR'd and you lost on paying down your mortgage at historically low rates while your debt was being eroded by inflation and your home remained the same price. I guess that's the risk you take for trying to be a clever clogs though.0 -
Blacklight wrote: »If there's anyone still out there for whom the penny has not dropped:
High inflation = less debt to pay off
It's all part of a very transparent plan.
The tricky part of the plan is that the BoE has to convince everyone that interest rate rises are not necessary to lower inflation because [insert your Merv excuse here].
So far so good. Unless you've STR'd and you lost on paying down your mortgage at historically low rates while your debt was being eroded by inflation and your home remained the same price. I guess that's the risk you take for trying to be a clever clogs though.
Penny dropped for me last year...
Shame i'd already missed the boat, but things never panned out the way I had imagined.
Ill do my bit now, instead of saving, ill do some spending, which is effectively what the government want you to do hence having low rates.
the message...
Dont save... (pay off debt or Spend) simples...
Which one are you guys doing?Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
Blacklight wrote: »If there's anyone still out there for whom the penny has not dropped:
High inflation = less debt to pay off
It's all part of a very transparent plan.
The tricky part of the plan is that the BoE has to convince everyone that interest rate rises are not necessary to lower inflation because [insert your Merv excuse here].
So far so good. Unless you've STR'd and you lost on paying down your mortgage at historically low rates while your debt was being eroded by inflation and your home remained the same price. I guess that's the risk you take for trying to be a clever clogs though.
yep all the people with index linked certificates, money in commodities and money in equities are devastated their savings have increased by double digits minimum whilst houses continue to fall in price.
if they were clever enough to sell, then they're clever enough to beat inflation with their savings, remembering of course they only need to beat inflation in one thing, house prices, which isn't hard is it?0 -
bingobob777 wrote: »all the people with index linked certificates, money in commodities and money in equities are devastated their savings have increased by double digits minimum
Well if it's that easy, why on earth are all the bears moaning about interest rates being so low....:cool:“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 -
Blacklight wrote: »If there's anyone still out there for whom the penny has not dropped:
High inflation = less debt to pay off
Nope... unless you mean high salary inflation.0 -
Penny dropped for me last year...
Shame i'd already missed the boat, but things never panned out the way I had imagined.
Ill do my bit now, instead of saving, ill do some spending, which is effectively what the government want you to do hence having low rates.
the message...
Dont save... (pay off debt or Spend) simples...
Which one are you guys doing?
Most of the people i know are saving.0
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