UK Inflation Rate

NineDeuce

3% rise. Mostly to do with the fall in pound/Brexit.

But dont talk the country down. It was the will of the people this paying more for goods lark. Those Remainers who just said this was going to happen were just Project Fear..... It was just fear, never reality. Oh, hold on a minute....

Filo25

michaels wrote: »

Personally I find it hard to get excited about a change in the reported inflation rate of 0.1% which is no doubt within the margin of error of the figures. Similarly having been alive in the 70s, 80s and 90s it is pretty hard to get interested in a difference between 2% inflation and 3% inflation.

Given in the last 6 years inflation hit 5% and the BoE did not move rates from 0.5% it would seem that it is their calculation of the level of slack in the economy that would trigger any increase rather than the headline CPI number.

Personally I think they will hike in November because the loss of face form not doing so would be too great having virtually pre-announced an increase but unless we quickly see an EU deal then I can not see the economy doing anything that continuing to slow and thus would be very surprised to see further increases next year. (Except possibly to get to a level where there is scope for cuts in the event of a hard Brexit which hardly seems like sensible policy making 'Why are you raising rates?' 'So when higher rates choke the economy and cause a recession we have scope for monetary easing!')

I'm not particularly excited by the move up by 0.1% either, its just as you say a decline could have given them a way of backing out of the heavily trailed November increase while still saving face, but this doesn't really help on that front, so probably at the stage of needing to increase by 0.25% to maintain credibility.

economic

GreatApe wrote: »

While incomes might not have increased a lot over the last 5-7 years other forms of wealth really have boomed

Someone I know transferred their final salary pot into a SIPP and got offered not far off £600,000 as a pension pot which is amazing for someone who was just a working class man. He is not in the best of health so its a massive advantage for him to take this lump sum rather receive closer to £22k annual pension. Not a lot of people like Osborne but the pension reforms really did help a lot of people.

Likewise stocks and bonds are at record highs and property in the South has done well over the last 5 years. So its not just about income its about total wealth which is at record highs.

Also inheritances and gifts are at record highs and growing as the savings rate is still positive

completely agree. i said this before and ill say it again. my parents dont have a degree, dont have any particularly skilled profession and have worked in largely admin style work. yet they have accumulated a decent amount of wealth and are now retired in their early 60s (could have done it earlier). much of that wealth will be passed down to me and my sibling. my dad is taking out anuities at 10% and will be receiving state pension in a few years along with my mum. just based on these his living expenses are covered and doesnt even touch the various savings and investment accounts and other pension pots (which will remain untouched).

they are also immigrants in this country. i myself have had a good career and earning power and accumulated quite a bit of wealth myself. but i would probably still need to work if it wasnt for my family wealth.

EDIT: oh i almost forgot, my dad will also eventually receive an inheritance himself (half a property and a few hundred k cash). it really is good to be a brit with immigrant baby boomer parents, i imagine it is on average even luckier to be a brit to british born baby boomer parents.

Thrugelmir

michaels wrote: »

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.

Nor forget that public sector workers have had to pay increased National Insurnce Contributions since April 2016 and increased pension contributions. For many that 1% hasn't been a rise at all.

westernpromise

economic wrote: »

completely agree. i said this before and ill say it again. my parents dont have a degree, dont have any particularly skilled profession and have worked in largely admin style work. yet they have accumulated a decent amount of wealth and are now retired in their early 60s (could have done it earlier).

And as a result, a lot of people hate them, want them robbed by the state, and would vote Labour to make it happen.

How dare they be tall poppies.

economic

westernpromise wrote: »

And as a result, a lot of people hate them, want them robbed by the state, and would vote Labour to make it happen.

How dare they be tall poppies.

yes agree. which is why tax planning early on is vital!! when it comes to taxes/government, always expect (and therefore prepare for) the worse, hope for the best.

BobQ

NineDeuce wrote: »

3% rise. Mostly to do with the fall in pound/Brexit.

But dont talk the country down. It was the will of the people this paying more for goods lark. Those Remainers who just said this was going to happen were just Project Fear..... It was just fear, never reality. Oh, hold on a minute....

It would be really good if May and Davis can negotiate a route to a more prosperous economy by the end of the Parliament, but the odds on this happening are lengthening by the day.

The really bold decision for May would be to call in the other party leaders and negotiate a deal in which a majority of sitting MPs stand on a "this is never going to work" platform. If the public vote them out in favour of "make Brexit happen" candidates then at least they tried to stop us jumping off the cliff.

But my expectation is that May and Davis will lead us to where the public wanted to go and when they find out what a mess we are in they will blame those who led them there not themselves for voting for such a policy..

BobQ

GreatApe wrote: »

While incomes might not have increased a lot over the last 5-7 years other forms of wealth really have boomed

Someone I know transferred their final salary pot into a SIPP and got offered not far off £600,000 as a pension pot which is amazing for someone who was just a working class man. He is not in the best of health so its a massive advantage for him to take this lump sum rather receive closer to £22k annual pension. Not a lot of people like Osborne but the pension reforms really did help a lot of people.

Likewise stocks and bonds are at record highs and property in the South has done well over the last 5 years. So its not just about income its about total wealth which is at record highs.

Also inheritances and gifts are at record highs and growing as the savings rate is still positive

Indeed, some of us have done very well out of it while others have suffered. The future will be much the same. Using inflation to devalue debt cannot work for ever

BobQ

westernpromise wrote: »

And as a result, a lot of people hate them, want them robbed by the state, and would vote Labour to make it happen.

How dare they be tall poppies.

I think you confuse hate with envy. The hate will be reserved for people who are more affluent than retired clerical staff.

worldtraveller

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI), was 3.0% in October 2017, unchanged from September 2017.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.8% in October 2017, unchanged from September 2017.
• The inflation rate for food and non-alcoholic beverages continued to increase to 4.1%, the highest since September 2013.
• Rising prices for food and, to a lesser extent, recreational goods provided the largest upward contributions to change in the rate between September 2017 and October 2017.
• The upward contributions were offset by falling motor fuel and furniture prices, along with owner occupiers’ housing costs, which remained unchanged between September 2017 and October 2017, having risen a year ago.
• The Consumer Prices Index (CPI) 12-month rate was 3.0% in October 2017, unchanged from September 2017.

ONS