UK Inflation Rate

Conrad

Recall Milibands 'Cost of living crisis' which the left were fully behind.


Along came the referendum great debate and suddenly all these 'progressives' announced we have a golden economy we must not throw away on Brexit.


Opportunists pure n simple.


Here are Labours other pre-referendum tag-lines;


Pre-distribution.

The squeezed middle.

The zero zero economy.


Hardworking Britain Better Off.

We want a John Lewis economy.

We're Britain, we're better than this.

A recovery made by the many and built to last

Conrad

Of the big 4 reserve currencies used as SDRs, the $ is the weakest and the Euro the strongest for the time being. £ and the yen lie between.

luvpump

RPI is what.. 3.9 % now .. I dont think Carney would push for a rate increase even it was 5% or 6%, unlike Yellen, in fact i'm not sure what this bloke does really ! Apart from come out with a load BS as to why % rates should stay low , Next he will come out with even more QE in the new year perhaps , that seems to be about it really

A_Medium_Size_Jock

ilovehouses wrote: »

Realistically nobody is doing their shopping and trying to spot the effect of the difference between German and UK inflation rates on their basket.
Show me where anybody said they were?

A UK consumer might not easily spot £16.67/ month over the course of of a year but they'd probably spot £48.33/ month over what the the same basket cost them a year ago.

A nice try at further obfuscation but I ain't buying it - and here's why:
UK wage growth is at 2.1%.

Wages in the three months to July were 2.1 percent higher than a year earlier

http://uk.reuters.com/article/uk-britain-jobs/jobless-rate-falls-to-lowest-since-1975-as-pay-growth-lags-idUKKCN1BO0T0
Inflation is at 2.9%.
A difference of 0.8%, right?
So your figures are out, because 0.8% of the £20k used so far here is £13-34 per month.

By your own admission therefore, since "A UK consumer might not easily spot £16.67/ month over the course of of a year" they are even less likely no notice a smaller amount.
It looks very much like you are the one in need of the link you provided earlier, not me.

westernpromise

UK unemployment hits a 42-year low:
https://www.theguardian.com/business/live/2017/sep/13/pound-one-year-high-uk-jobs-report-pay-squeeze-business-live

I don't understand why benefit levels aren't pegged to unemployment. In Britain, if you don't work, it's because you don't want to. Benefits should be nil for people who make that choice.

A_Medium_Size_Jock

ilovehouses wrote: »

Getting a pay rise doesn't mean people wouldn't notice their monthly outgoings had increased by £48.33. Neither does it mean you wouldn't notice the £35 more in your hand then; nor does it mean you can simply ignore that extra.


Different discussion.Says you. Yes there's a difference of 0.8% between [STRIKE]yesterday's[/STRIKE] the current inflation rate and [STRIKE]today's[/STRIKE] the current wage rise [STRIKE]number[/STRIKE] rate. 1% was the difference between inflation in Germany and the UK and Michaels' assertion that consumers wouldn't notice this difference. He did not say that - show us where he did?



There isn't a 'smaller amount'. Yes there is, unless arithmetic is also not a strong point for you?

Based on the arbitrary spend of £20k 2.9% inflation leads to an increase in nominal costs of £48.33/ month. That's probably noticeable to most. And based also upon that 20k the 2.1% average wage rise would be£35/month. They probably also notice that their wages have[STRIKE]n't[/STRIKE] increased to compensate so their real costs have increased only slightly to £13-33/month.

I'm not going to get into further debate about my 'admission' about how noticeable £13.34 or £16.67 month actually is because it's small picture stuff. Bigger picture is that real wages are falling and the price of the inflation basket is rising as fast as it has for a few years. Yes, a few - as stated before, inflation has been higher on average for most of the past 50 years.



Maybe you can lend it to me when you've finished with it. I never needed it though it's fairly obvious that you do.

Corrected that for you; make the most of that book.
I shall leave you with an adjoinder appropriate in responding to your posts:

Be thankful for all the difficult people in your life, and learn from them. They have shown you exactly who you do not want to be.

A_Medium_Size_Jock

ilovehouses wrote: »

Err. Falling wages have hardly gone unnoticed over the last 10 years and making a 'hoo-ha' about inflation isn't something that started yesterday.

Then show us where your concerns are in these forums about those?
:whistle:

michaels

imho

The difference between 2.9% rpi and 2% rpi for a single year is negligible and likely to be swamped by different effective inflation rates for individuals.

In most people's expectations real wages increase by a couple of percent each year due to wage increases and seniority increases, probably not noticeable every year but definitely people expect to be better off after 5 years.

Since 2009 this has not happened. In the years where inflation has been well below historical norms and even negative this has not felt so bad with some sort of perceptions issue at play but themeffect is cumulative so the current real terms fall plus higher than recent inflation is noticeable.

Income increases are quite widely distributed, in summary private sector wages fell sharply in 2008-10 but have since seen increases so at least feel like they are going the right way even if overall they have not really increased any more than public sector wages that were flat and then capped at 1% with annual band increases also now severely curtailoed with people at the top of their bands meaning they seem particuarly tight with the current inflation uptick.

So inflation right now is not dreadful but is pyschologically a big problem especially for those who have had little recent wage growth.

Finally I do not think a one off change in the price level due to devaluation merits an interest rate response until it feeds into wagemincreases that then necesitate further price increases.

A_Medium_Size_Jock

ilovehouses wrote: »

Wages are falling in real terms and inflation has hit a multi-year high.

My personal 'concerns' are neither here nor there.

And yet your vehement cries regarding the current situation abound; proof of further hypocrisy from just one more of the blinkered unaccepting pro-remain advocates.

My personal 'concerns' are neither here nor there.

They certainly are not.
Woo-hoo for your acceptance of that.
:T

A_Medium_Size_Jock

ilovehouses wrote: »

I think falling real wages and inflation at a multi-year high is worth discussing. Cute but useless choice of terminology there since "multi-year" means anything over say a few years - and you still ignore the past ten years. Neither are 'good' things whether they've been worse in the past or whether people notice their real spending power falling or not. No one suggests they are, rather you insist on crying "wolf" when the fact is that things are not as bad as you are trying to make them out to be.

That's it. Debate me all you like I will when you persist in obfuscation but it's off topic because you don't like the answers, no other reason.
.



Yet you did ask what they were no I did not & besides, you very rarely answer direct questions and built a childish character assassination when I wouldn't indulge you - You really do not like the favour returned? Perhaps I must point out the frequency with which you do that; it might take a while, there are so many examples.

>>>>>>>>>>>