Inflation, Inflation, Inflation...

westernpromise

Rinoa wrote: »

BBC Editorial Meeting Minutes 15th Novermber 2016


Today Editor: The inflation figures are out today...we need to go big on the threat to people's personal finances as inflation takes off and rockets ahead. Get Blanchflower on, and McDonnell. We need to tell the story about government failure; 2% Inflation target likely to be broken, more benefit claimants in poverty, more expensive Marmite.


Today 'gopher': The figures are out. Inflation has come down.


Today Editor: We need to go big of the threat to people's finances as inflations tumbles. Get Blanchflower on, and McDonnell. We need to tell the story about government failure; 2% Inflation target not met, pensions not going up, saving interest going down.

Probably not far off what actually does happen at the BBC.

StevieJ

A_Medium_Size_Jock wrote: »

Ha ha ha ............... from your link:


Of course it's after the headline of inflation falling to 0.9% that you get the "but but but"'s from those warning that inflation will rise.
As indeed it may.
But it hasn't yet.

Don't worry it is coming.

ii Inflation Report
November 2016
Largely as a result of the depreciation of sterling, CPI inflation is expected to be higher throughout the three-year
forecast period than in the Committee’s August projections. In the central projection, inflation rises from its current level
of 1% to around 2¾% in 2018, before falling back gradually over 2019 to reach 2½% in three years’ time. Inflation is
judged likely to return to close to the target over the following year.

http://www.bankofengland.co.uk/publications/Documents/inflationreport/2016/nov.pdf

wotsthat

A bit of anecdotal as someone who is trying to increase prices in retailers. It's a bit of a nightmare. Rather than putting up prices retailers, after ignoring communications and a lengthy talking exercise, would prefer to spend thousands on reformulations/ repackaging to relaunch a product at the same price point but an even higher cost per unit weight (they assume consumers are thick).

It's pig headedness because for new products being launched at current exchange rates they couldn't much care about the price point (within reason). We're in for a mass delisting and relaunching of products I think.

CLAPTON

many people here believe that the BoE should be independent of government (although I don't of course)

and many support the independent BoE in having a target inflation rate of 2% as being in the best interests of the country.

also, most most sensible people know it's impossible to get it exactly right so would perhaps accept that a range of 1% to 3% inflation is desirable


so do people think that an inflation rate of between 1 and 3% is desirable and in the best interest of the people of the UK?

mayonnaise

PPI input MoM : 4.6%
PPI input YoY : 12.2%

http://www.wsj.com/articles/u-k-producer-price-inflation-hits-four-year-high-1479203503

Oops.

A_Medium_Size_Jock

mayonnaise wrote: »

PPI input MoM : 4.6%
PPI input YoY : 12.2%

http://www.wsj.com/articles/u-k-producer-price-inflation-hits-four-year-high-1479203503

Oops.

Ahem.

The U.K.'s Office for National Statistics said Tuesday that British producer prices rose 2.1% on the year in October, the fastest annual rate of growth since April 2012.

Read more: http://www.nasdaq.com/article/uk-producerprice-inflation-hits-fouryear-highupdate-20161115-00901#ixzz4QAvH8WnJ

Oh come on Mayo, can't you find better doom & gloom than that?
2.1%
And?
What happened in 2012 and before then?
Did the UK slip into some imaginary black hole; did planet Earth cease spinning upon it's axis; indeed, did the world end?
Er ...... nope.

See the chart below - click to see it over ten years for a better idea of whether or not 2% is so awful.
http://www.tradingeconomics.com/united-kingdom/inflation-cpi

A_Medium_Size_Jock

StevieJ wrote: »

Don't worry it is coming.

http://www.bankofengland.co.uk/publications/Documents/inflationreport/2016/nov.pdf

It may well be coming.
However, recent BOE forecasts haven't exactly been very accurate have they?

mayonnaise

A_Medium_Size_Jock wrote: »

Ahem.

Oh come on Mayo, can't you find better doom & gloom than that?
2.1%
And?

Come back to me when you understand the difference between producer prices and PPI input.

A_Medium_Size_Jock

mayonnaise wrote: »

Come back to me when you understand the difference between producer prices and PPI input.

No, you come back to me when you understand the correlation between the two instead of attempting scare tactics as usual.
And perhaps try reading up on why PPI hasn't translated into increased prices at the factory gates so far.

Nick_C

wotsthat wrote: »

October petrol & diesel prices highest for the year.

https://www.petrolprices.com/the-price-of-fuel.html

Yes, but that's a very short term view. I filled up last week and paid £1.15 for Diesel. Still cheaper than at any time between April 2010 and May 2015, when my fuellings averaged £1.32 and peaked at £1.50.