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Inflation will rise faster than expected
Graham_Devon
Posts: 58,560 Forumite
I'd like to know whom this shocks.
Anyway...
It's expected that the BOE will re-visit and increase their inflation expectations in it's three monthly update.
http://www.telegraph.co.uk/finance/economics/9669403/Inflation-will-rise-faster-than-expected.html
Anyway...
The key consumer prices index (CPI) for October is expected to have reversed its recent fall to rise from 2.2pc in September to 2.5pc, when the Office for National Statistics publishes the figures on Tuesday.
In its three-monthly update on the economic outlook on Wednesday, the Bank will admit that inflation is proving to be more “sticky” than hoped. However, it is expected to sound a more positive note on UK growth than in previous reports.
It's expected that the BOE will re-visit and increase their inflation expectations in it's three monthly update.
http://www.telegraph.co.uk/finance/economics/9669403/Inflation-will-rise-faster-than-expected.html
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Comments
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Great news for the BoE and its policy of inflating away debt with negative real interest rates - the banks worst nightmare is low or negative inflation resulting in tighter monetary conditions which they are powerless to counter.
Inflation exceeding expectations is an added bonus as it shows that the BoE maintains some credibility despite its policy objective.I think....0 -
Are we surprised?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Are we surprised?
Do we have any control over inflation?0 -
many of us expect quite large rates of inflation over the next few years
all that printing money will have a consequence0 -
Single months figure which hasn't been released yet - noise about noise.
We're in a downward trend with CPI at a three year low. The article refers to the upward pressure on CPI - tuition fees, energy costs & food - none of them are under the control of the BoE.
Is this a turning point and the trend reversing? We should know in a year or so.0 -
Fantastic news, hopefully we will see a good dose of hpi soon0
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Single months figure which hasn't been released yet - noise about noise.
We're in a downward trend with CPI at a three year low. The article refers to the upward pressure on CPI - tuition fees, energy costs & food - none of them are under the control of the BoE.
Is this a turning point and the trend reversing? We should know in a year or so.
That's the point. We've pretty much (looking at the data only going forward) come to the end of that downward trend.
This isn't looking at one months data, it's looking at all the data and projecting. CPI is a backward looking indicator, so it's easy to look at that data and compare to what's happening now.0 -
It's "sticky" largely because virtually unregulated cartels in key sectors like energy and fuel and allowed to price increase virtually as they like.No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.
The problem with socialism is that eventually you run out of other people's money.
Margaret Thatcher0 -
Graham_Devon wrote: »I'd like to know whom this shocks.
All the people who kept banging on about deflation?
For once GD we have been in total agreement. It's not if this fresh money escapes, it's when this new money escapes that inflation will return with a bang. IMO.0 -
JonnyBravo wrote: »All the people who kept banging on about deflation?
For once GD we have been in total agreement. It's not if this fresh money escapes, it's when this new money escapes that inflation will return with a bang. IMO.
Probably a bit of a shock to Merv, though he seems to be surprised by everything that happens.0
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