MSE News: Inflation falls to lowest level since May 2000

Former_MSE_Paloma

"Inflation matched its lowest level on record in December when it fell to 0.5%, official figures showed today..."

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Inflation falls to lowest level since May 2000



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Pincher

Are we turning Japanese? Long term low interest rate, flirting with negative inflation?

All it takes is a few earthquakes, and a nuclear blow-out,
and we are there. Is it me, or is half the restaurants sushi bars already? I see bento boxes pictures a lot in windows.

jamesd

Looks like more good news for investors, with increased prospects of sustained low interest rates and possibly more quantitative easing to help increase the value of investments.

Pincher, the UK is not prone to 68 foot high tsunamis or large high damage earthquakes.

antrobus

jamesd wrote: »

Looks like more good news for investors, with increased prospects of sustained low interest rates and possibly more quantitative easing to help increase the value of investments....

The fact that CPI has dropped from 1.5% to 0.5% has just increased real interest rates by 1.0%.

jamesd wrote: »

...Pincher, the UK is not prone to 68 foot high tsunamis or large high damage earthquakes.

So long as that volcanic ridge in the Canary Islands doesn't collapse all at once.

purch

I'm sure Shadowstats or someone similar will tell us that CPI is "really" running at 27%

Generali

purch wrote: »

I'm sure Shadowstats or someone similar will tell us that CPI is "really" running at 27%

Woolies and Coles are doing a loss leader on cheap bread having cut the price of a sliced white from $1 to 85c. That shows real deflation running at 15% so I should be able to buy a house for $5 in about 10 years.

Happy days:money::money:

MABLE

Thankfully my final salary pensions increase in line the RPI. However I am sure my own personal inflation is certainly higher than CPI.

shortchanged_2

Can some of the economic experts on here please explain how we are still registering positive inflation figures?

I can't think of one thing that is more expensive this month than last, let alone more expensive than last year, yet according to the inflation figures things are still getting more expensive.

I find it all a bit baffling and yes mayo before you get the chance I know I find everything baffling.
Can

mayonnaise

shortchanged wrote: »

I find it all a bit baffling and yes mayo before you get the chance I know I find everything baffling.

Instead of being baffled, you could look at the data tables provided by the ONS?

http://www.ons.gov.uk/ons/dcp171778_390953.pdf

Contributions to the CPI 12-month rate: December 2014

Percentage points
Food and non-alcoholic beverages -0.19
Alcohol and tobacco 0.22
Clothing and footwear -0.01
Housing and household services 0.12
Furniture and household goods 0.01
Health 0.05
Transport -0.21
Communication 0.02
Recreation and culture 0.08
Education 0.22
Restaurants and hotels 0.28
Miscellaneous goods and services -0.06

Pincher

jamesd wrote: »

Pincher, the UK is not prone to 68 foot high tsunamis or large high damage earthquakes.

68ft? I think I'm OK up to 100meters. Have to allow for the wash as it races uphill, of course.


Rising sea level and an inadequate Thames Barrier could do the job of Tsunami just as well. There is quite a bit of coastal erosion already, too. Flooding from rain doesn't count, I suppose.


Texas has been getting a lot of sink holes. Some enterprising guy pumped out ground water, and the town that bought the water suffered terrible subsidence. They are suspecting pumping oil and now fracking is causing more sink holes.
Just saw Superman, Man of Steel. They tapped the core of Krypton for energy, which caused the planet to implode: sounds familiar, doesn't it? If I see a Cuadrilla van nosing around, should I sell, or just buy more insurance?

wotsthat

shortchanged wrote: »

I can't think of one thing that is more expensive this month than last, let alone more expensive than last year, yet according to the inflation figures things are still getting more expensive.

Why not treat Mrs. S. more often? Maybe a nice meal, couple of bottles of wine and, who knows, an overnight stay in a hotel?

Should help get your inflation up.