Inflation falls to 2.4%

grizzly1911

Mr._Pricklepants wrote: »

Do you mean the figures are fiddled? Or the basket of goods is unrepresentative? Can you elaborate?

Perhaps he means at an individual level?

I know many people (mainly elderly but not restricted to them) who are suffering much higher rates than 2.4% on their somewhat more compact basket of purchases.

ILW

I get the immpression that inflation may be a big issue in the next election. Despite all the arguments about the inflating away debt and the dangers of deflation, many voters are just getting peed off with ever increasing prices and a government that seems to be incapable or unwilling to do anything about it.

Carl31

ILW wrote: »

I get the immpression that inflation may be a big issue in the next election. Despite all the arguments about the inflating away debt and the dangers of deflation, many voters are just getting peed off with ever increasing prices and a government that seems to be incapable or unwilling to do anything about it.

Cost of living full stop will be a big factor


Inflation, rentals, house prices, all going the wrong way in many peoples eyes

Graham_Devon

ILW wrote: »

I get the immpression that inflation may be a big issue in the next election. Despite all the arguments about the inflating away debt and the dangers of deflation, many voters are just getting peed off with ever increasing prices and a government that seems to be incapable or unwilling to do anything about it.

I think it's the way it's put across that's the issue.

Earlier on the radio they were interviewing, as they do in the high street. One lady they interviewed simply asked "do they think we are stupid enough to believe fuel prices at £1.40 a litre is cheaper.....they must think we are idiots".

Now, we all know it's the rate of increases, but the media does put it across as things getting cheaper. Indeed "lower fuel prices see inflation fall" is the headline.

Maybe they need to define it, or explain it better. Or at least the media should have some responsibility.

Inflation has been very painful for many, and it's a kick in the teeth to get told "its ok, fuel prices at £1.40 are now cheaper".

ILW

Graham_Devon wrote: »

I think it's the way it's put across that's the issue.

Earlier on the radio they were interviewing, as they do in the high street. One lady they interviewed simply asked "do they think we are stupid enough to believe fuel prices at £1.40 a litre is cheaper.....they must think we are idiots".

Now, we all know it's the rate of increases, but the media does put it across as things getting cheaper. Indeed "lower fuel prices see inflation fall" is the headline.

Maybe they need to define it, or explain it better. Or at least the media should have some responsibility.

Inflation has been very painful for many, and it's a kick in the teeth to get told "its ok, fuel prices at £1.40 are now cheaper".

We are treated like idiots.
Probably because a large proportion are.

Generali

I deliberately haven't quoted any poster so as not to start an argument.

My feeling is that most people don't understand the strengths, weaknesses, philosophy and application of economics.

We are taught at school that there is gravity, it's not that the earth sucks. We are taught that 2+2=4 (or perhaps 5 depending on your assumptions if you're an economist).

Nobody (really) is taught what inflation means or GDP or what money is. Great violinists are taught the violin at a 3 years of age. Economists are taught aged 20 if at all.

Thrugelmir

andyroberts1967 wrote: »

as it will ease any (non-existent) pressure on the BoE to raise interest rates.

When the economy recovers. Then interest rates will rise as a consequence. Depends which you prefer from your personal situation.

Carney is the type of man who would raise rates by a .25% just to show who is master to the markets.

ILW

Thrugelmir wrote: »

When the economy recovers. Then interest rates will rise as a consequence. Depends which you prefer from your personal situation.

Carney is the type of man who would raise rates by a .25% just to show who is master to the markets.

Hope that is true.
We see to have had years of BoE just responding to what "the markets" wanted, in many cases at the expense of the wider population.

ILW

Thrugelmir wrote: »

When the economy recovers. Then interest rates will rise as a consequence. Depends which you prefer from your personal situation.

Carney is the type of man who would raise rates by a .25% just to show who is master to the markets.

Hope that is true.
We see to have had years of BoE just responding to what "the markets" wanted, in many cases at the expense of the wider population.

That was before Merv managed to lose most of the credibility due to his woeful failure to control what was basically the one target he had.

StevieJ

chucknorris wrote: »

They aren't getting cheaper, the rate at which they are increasing is falling (ie they are still going up in price, but at a rate less than they were previously).

Not necessarily, inflation rates can be affected by an actual drop in individual prices between one month and another or even one year and another.

The average price of petrol on UK forecourts has fallen from 136.89p a litre in mid April to 133.35p in mid May.

AndyRoberts wrote:

Very good news, it's good to know that things are getting cheaper. If fuel prices are dropping, this has an impact on many other products which are transported, so this can only be welcomed!