UK Inflation Rate

mrginge

ruggedtoast wrote: »

Sterling rapidly approaching parity with the euro. Will be chaos when it falls below.

Indeed. The terrors of Aleppo will surely be nothing compared to the misery of a weaker pound compounded with inflation hitting the dizzy heights of 3%

Andy_L

I've lost track of things, can someone remind me if inflation of 1.6% is a good or bad thing? and if its bad, is that because its to high or to low?

mayonnaise

Jon_B wrote: »

This is just the start. It'll be 3-5% by the end of the year I reckon.

With manufacturing input prices at a whopping +15.8% YoY, I think your estimate will be a bit on the low side.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/producerpriceinflation/dec2016

CLAPTON

mayonnaise wrote: »

With manufacturing input prices at a whopping +15.8% YoY, I think your estimate will be a bit on the low side.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/producerpriceinflation/dec2016

1. Main points
The annual rate of producer price inflation continued to grow in December 2016, although mainly as a result of falling prices a year ago, as growth was relatively flat on the month.
Factory gate prices (output prices) rose 2.7% on the year to December 2016 and 0.1% on the month, which was the sixth consecutive period of annual growth and the eleventh of monthly growth.
Prices for materials and fuels paid by UK manufacturers for processing (input prices) rose 15.8% on the year to December 2016 and 1.8% on the month.
Prices of imported materials and fuels was the largest driver of input price growth, which is largely a result of sterling depreciation and a recovery in global crude oil prices.

..............................................

xylophone

And RPI (remember that?)

http://www.thisismoney.co.uk/money/news/article-4127134/UK-inflation-hit-highest-level-two-years.html

The Retail Prices Index (RPI) - a separate measure of inflation that includes housing costs - rose to 2.5 per cent, up from 2.2 per cent in November.

michaels

I worry, inflation is so much higher than it has ever been since interest rates have been at 0.5%...not.

As in 2010-13, inflating away personal and national debt is economically beneficial to the uk.

Graham_Devon

michaels wrote: »

As in 2010-13, inflating away personal and national debt is economically beneficial to the uk.

Rules on that have changed now.

It's all about Brexit now. Keep up!

Funny thing is, when it was back at 5%, how many times was I told this wasn't high, it's not a problem?

Now, after Brexit, 1.6% seems to be a massive problem, poor won't eat, people will lose jobs etc etc! Where was the worry for the poor when inflation was nearly 3 times higher?!?!

Thrugelmir

A_Medium_Size_Jock wrote: »

Well with the average wage increase currently running at 2.5% according to the ONS that surely means that on average people are still ahead, yes?

Inflation is dependent on one's personal spend.

mrginge

michaels wrote: »

As in 2010-13, inflating away personal and national debt is economically beneficial to the uk.

Clearly an instant ban is required for such heresy

westernpromise

In the aftermath of White Wednesday there was similar wailing about what a disaster the lower exchange rate was and we then embarked on a 17-year boom without inflation.