Inflation, Inflation, Inflation...

worldtraveller

UK CPI inflation has risen to 1%.

The Consumer Prices Index (CPI) rose by 1.0% in the year to September 2016, compared with a 0.6% rise in the year to August.

The rate in September 2016 was the highest since November 2014, when it was also 1.0%.

The main upward contributors to change in the rate were rising prices for clothing, overnight hotel stays and motor fuels, and prices for gas, which were unchanged, having fallen a year ago.

These upward pressures were partially offset by a fall in air fares and food prices.

ONS

CLAPTON

inflation still below the BoE target of optimum rate of 2%

michaels

worldtraveller wrote: »

UK CPI inflation has risen to 1%.

The Consumer Prices Index (CPI) rose by 1.0% in the year to September 2016, compared with a 0.6% rise in the year to August.

The rate in September 2016 was the highest since November 2014, when it was also 1.0%.

The main upward contributors to change in the rate were rising prices for clothing, overnight hotel stays and motor fuels, and prices for gas, which were unchanged, having fallen a year ago.

These upward pressures were partially offset by a fall in air fares and food prices.

ONS

With so much going on gbp devaluation, oil/commodity price volatility etc it is impossible to know if the Living Wage is having an impact on services inflation. This matters I think. Assuming sterling reaches a new level it will result in an inflation 'pulse' that will work through the economy then drop out if sterling stabilises. However if wages start rising in response, pushing up the 'domestic' component of prices then this could become an inflationary process rather than just a one off change in the price level.

Why does this matter? A one off change would not require a BoE response, an inflationary process does.

westernpromise

michaels wrote: »

With so much going on gbp devaluation, oil/commodity price volatility etc it is impossible to know if the Living Wage is having an impact on services inflation. This matters I think. Assuming sterling reaches a new level it will result in an inflation 'pulse' that will work through the economy then drop out if sterling stabilises. However if wages start rising in response, pushing up the 'domestic' component of prices then this could become an inflationary process rather than just a one off change in the price level.

Why does this matter? A one off change would not require a BoE response, an inflationary process does.

We actually need a nice little dose of inflation at this point to dilute public and private debt. The imponderable is whether the benefits to things like housing affordability will themselves be diluted by a response to the above of a rise in interest rates.

wotsthat

Microsoft doing their bit to help the BoE reach their inflation target.

Microsoft is to increase its prices by as much as 22pc in the UK because of sterling’s recent decline, a rise that is likely to affect thousands of businesses and could cost the Governments tens of millions of pounds.

http://www.telegraph.co.uk/business/2016/10/23/microsoft-to-lift-prices-up-to-22pc-over-falling-pound/

Thrugelmir

wotsthat wrote: »

Microsoft doing their bit to help the BoE reach their inflation target.

Desperate to hang onto their revenue stream it seems.

Never seen them reduce their prices though. Even when $-£ was over 2.

wotsthat

The pound's recent devaluation after June's Brexit vote has already led to some price rises, and model railways are one business feeling the effects.

Early in October, the leading manufacturer Hornby told retailers that wholesale prices for many of its trains would rise by an average of 10%.

The company has been making its models in China for more than 20 years.

http://www.bbc.co.uk/news/business-37755137

Won't anyone think of the children?

CLAPTON

wotsthat wrote: »

http://www.bbc.co.uk/news/business-37755137

Won't anyone think of the children?

It's a little unclear whether, ever increasing foreign debts and selling off future inflow of foreign dividend streams, is really the best way of helping our children, even if it is the loony left's answer to everything.

wotsthat

CLAPTON wrote: »

It's a little unclear whether, ever increasing foreign debts and selling off future inflow of foreign dividend streams, is really the best way of helping our children, even if it is the loony left's answer to everything.

Mr Clapton - children's toy snatcher.

CLAPTON

wotsthat wrote: »

Mr Clapton - children's toy snatcher.

you are increasingly becoming a toxic toastie ; full of self hatred, wishing harm to everyone and stamping your little feet when you don't get your own way.