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UK CPI inflation in surprise fall in June

24

Comments

  • undetterred
    undetterred Posts: 635 Forumite
    500 Posts
    ILW wrote: »
    Yes they do.

    Many cannot understand that, which is very sad.

    Perhaps initially?but surely falls will filter thru to prices?
  • ILW
    ILW Posts: 18,333 Forumite
    Prices are still rising at over 4% per year. 100% above the target.
  • ILW
    ILW Posts: 18,333 Forumite
    undetterred wrote: »
    Perhaps initially?but surely falls will filter thru to prices?


    A fall in the rate of inflation means prices are still increasing and will continue to do so.
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    To be fair, the drop in this month's figures are due to price drops on tvs, consoles, cameras etc - not too surprising in the case of consoles for example as Wii sales are declining as it reaches the end of its shelf life, and the new console will be out next year. There are rumours of a PS4 and Xbox720 to be released next year too.
  • DervProf
    DervProf Posts: 4,035 Forumite
    There's no good reason why the BoE can't cut the base rate next month. I'm sure Merv won't want to risk CPI falling bellow target.
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • Heyman_2
    Heyman_2 Posts: 1,819 Forumite
    DervProf wrote: »
    There's no good reason why the BoE can't cut the base rate next month. I'm sure Merv won't want to risk CPI falling bellow target.

    Merv is merely the governor and doesn't control the votes of the other 8 members of the MPC, including the hawk-ish new boy Ben Broadbent who incidentally voted to keep rates where they were last month.

    I wonder why that was?
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    undetterred wrote: »
    Perhaps initially?but surely falls will filter thru to prices?

    No, prices are still going UP.

    If inflation is 2%, something that costs £100 will cost £102.

    If inflation falls to 1%, the cost of the £102 item is now £103.02.

    A fall means that things are going up in price less than they were.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    undetterred wrote: »
    I'm sure Devon can spin some gloom out of it.


    So twice the BOE target is something to celebrate?
  • kabayiri
    kabayiri Posts: 22,740 Forumite
    Part of the Furniture 10,000 Posts
    It's more noticeable because of the way bills have been rising too, in big headline rises.

    The cable/tv/phone package from Virgin was sneakily put up in 2 separate chunks, separated by a few months. It was certainly more than 5%.

    And inflation busting energy bill rises of 16/18%, it feels all a lot higher.

    I don't see any evidence to suggest consumers are not going to be squeezed further in coming years.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    edited 12 July 2011 at 10:50AM
    undetterred wrote: »
    I'm sure Devon can spin some gloom out of it.

    Why would I spin it.

    This is exactly what I said inflation would do:
    Graham_Devon wrote: »
    5% has already been factored in. Currently 4.5%. However, it's likely that will fall back slightly as we progress through the year.


    http://forums.moneysavingexpert.com/showpost.php?p=44259184&postcount=9

    No real surprise.

    I'd suggest you take note of whats said, instead of trying to jump in with some silly line :)
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