Inflation, Inflation, Inflation...

worldtraveller

padington wrote: »

I would consider buying in the south, outside of London now if you wanted to play the market. The ripple finally looks like it's happening with the south east booming more than London now.

Not that I wanted to drag this into another house price thread, so apologies, but, just to agree, it's absolutely nuts here in the south-east. A friend of ours bought a two bed end of terrace house a year ago for £275,000. They put it on the market a week ago for £325,000 and have had several offers already over asking price!

vivatifosi

worldtraveller wrote: »

Not that I wanted to drag this into another house price thread, so apologies, but, just to agree, it's absolutely nuts here in the south-east. A friend of ours bought a two bed end of terrace house a year ago for £275.000. They put it on the market a week ago for £325,000 and have had several offers already over asking price!

That's exactly what has happened where I live (Herts). If I was a first time buyer, the closest places that I would be able to afford somewhere to buy would be Bedford or Luton. However buy in either of those, and you will stump up £4000+ in commuting to London for starters.

westernpromise

vivatifosi wrote: »

However buy in either of those, and you will stump up £4000+ in commuting to London for starters.

Yes, which you don't get back when you sell.

michaels

A surprising 0.5% CPI for March

Along with growth looking weaker

Not N.I.C.E

michaels

CPI back down to 0.3%, Carney has missed his target again.

The only proposal I have heard from him for gettign inflation up and thus meeting his mandate is for the UK to vote for BREXIT. This Carney says might have the side benefit of allowing interest rates to start normalising sooner.

I know officially he has to remain neutral but from his pronouncements it seems fairly clear that her thinks Brexit would help him meet the targets he is employed to acheive.

Generali

michaels wrote: »

CPI back down to 0.3%, Carney has missed his target again.

It's funny really, everything else seems to be chugging along okay with employment, wages and GDP going up and unemployment going down. If inflation is the only major economic indicator looking iffy then maybe it's no bad thing. Could the measurement be wrong do you think?

michaels wrote: »

The only proposal I have heard from him for gettign inflation up and thus meeting his mandate is for the UK to vote for BREXIT. This Carney says might have the side benefit of allowing interest rates to start normalising sooner.

I know officially he has to remain neutral but from his pronouncements it seems fairly clear that her thinks Brexit would help him meet the targets he is employed to acheive.

If there was only a way you could influence the decision.....

Are the Brexit side still saying Vote Brexit to Stay in the EU!?

michaels

Generali wrote: »

It's funny really, everything else seems to be chugging along okay with employment, wages and GDP going up and unemployment going down. If inflation is the only major economic indicator looking iffy then maybe it's no bad thing. Could the measurement be wrong do you think?

We both knw I am having a bit of fun here so....

Could it be that the reason the inflation target is being missed is that with a limitlessly elastic supply of labour increases in demand are not feeding through into a higher price (wages)?

Generali

michaels wrote: »

We both knw I am having a bit of fun here so....

Could it be that the reason the inflation target is being missed is that with a limitlessly elastic supply of labour increases in demand are not feeding through into a higher price (wages)?

Could be. What makes the labour supply so elastic do you think michaels?

cells

Japan is low inflation low wage growth and its got little to no immigration and its started a demographic decline too so I am not convinced immigrants supply more labor than they consume and push down labor prices and inflation

My view is that the economy re-orders itself to fit the manipulated base rates. So with low rates the economy will move into a low inflation mode. With higher rates the economy will move towards a higher inflation mode.

westernpromise

cells wrote: »

manipulated base rates.

The BoE sets base rates. It doesn't "manipulate" them.