Inflation now 3.1% ... ie up 0.3%... Base Rate follow?

amcluesent

>CPI inflation is likely to fall back within a matter of months".<

What a crock. We are already past peak oil, and with the politically instability in Russia and Iran going for death or (nuclear) glory, $100 oils looks a sure bet within 18 months.

ManAtHome

Some light reading from Feb 2006 http://www.myfinances.co.uk/uk-economy/economic-indicators/inflation/interest-rates-on-hold-2006-$15157906.htm

bristolleedsfan

ManAtHome wrote: »

Some light reading from Feb 2006 http://www.myfinances.co.uk/uk-economy/economic-indicators/inflation/interest-rates-on-hold-2006-$15157906.htm

nice share speaks 4 itself :rotfl:

[Deleted User]

I`m in the process of hunkering down. This increase in inflation and potential interest rate rise is going to knock companies and public spending for six

Anon

Not wishing to take this thread off topic, but it does make a mockery of the regulations regarding sales (of interest to Money Savers!) that furniture companies could bump their prices up 10% in anticipation of the Easter Sales (ie being able to then seem to reduce their prices in adverts). The fact that this is specifically mentioned and can contribute to such an affect on the overall economy perhaps demonstrates that the consumer is being manipulated (yes, I know we know that furniture shops seem to always have sales on ...!) and that perhaps the rules for sales need looking at.

Anon

Fella

A 0.25 increase is currently trading at 1/5 on Betfair (i.e. it's considered almost a certainty).

No change is 10/1. An increase of 0.50 is also 10/1.

I'm slightly surprised at that since a 0.25 increase from 5.25% is fairly puny (it represents a rise of 5.88%. When interest rates were 3.50 a 0.25 increase represented an increase of 7.14%).



Fella

ED

Anon wrote ''that furniture companies could bump their prices up 10% in anticipation of the Easter Sales (ie being able to then seem to reduce their prices in adverts).''

Shocking, and you raise a valid point. Perhaps the authorities will prevent this happening again...especially as it is deemed to have affected Inflation so profoundly.

Fella - 0.30% rise in Inflation seems almost too much for a 0.25% Base Rate rise to be sufficient - though BoE may want to keep in with impending PM Gordon Browned-off. Were I a betting person, I'd be placing a 10/1 bet for a May 10th increase of 0.50%. But I share kittie's concern for detrimental consequences for companies, public services, etc.

RayWolfe

This price rise prior to a sale nonsense happens all the time but it is not allowed in most of the rest of Europe!
However, if the Government tries to change it, wait for the flak to fly, especially from the Daily Mail talking about "Red-Tape" for poor benighted business and "copying rubbish Europeans"!

liamsquire

Interest Rates should be up in May I would imagine but I can only see the MPC increasing the rate by 0.25%, which is miniscule. I would love to see 0.5% although I highly doubt they will have the resolve to go through with it unfortunately.

steady__eddie

Average earnings figs out today have provided more ammo in favour of a 0.5% increase.