UK Inflation Rate

phillw

AKRev01 wrote: »

Depends on your situation, as someone who wants to get a mortgage I’d like interest to stay low for now and then rocket when I get a fixed mortgage!

Why do you want rates to go up? It's one thing to say you don't care, but actually wanting it?

Unless you fix for the entire length of the mortgage then you're going to want them low again soon.

worldtraveller

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI) 12-month rate was 1.9% in February 2019, up from 1.8% in January 2019.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in February 2019, unchanged from January 2019.
• Rising prices for food, alcohol and tobacco, and across a range of recreational and cultural goods produced the largest upward contributions to change in the rate between January and February 2019.
• The largest, offsetting, downward contribution came from clothing and footwear, with prices rising between January and February 2019 but by less than between the same two months a year ago.
• The Consumer Prices Index (CPI) 12-month rate was 1.9% in February 2019, up from 1.8% in January 2019.

ONS

gfplux

I understand that there is no upward pressure on wages. Why is that. I have in the past always understood that full employment creates this which then further adds to inflation.
Is there something different about full employment now that is different to the past.
How much do zero contracts have to do with this or is it to do with the way employment or unemployment is counted?

Dee_1303

gfplux wrote: »

I understand that there is no upward pressure on wages. Why is that. I have in the past always understood that full employment creates this which then further adds to inflation.
Is there something different about full employment now that is different to the past.
How much do zero contracts have to do with this or is it to do with the way employment or unemployment is counted?

First your understandings are wrong.
Second not only are there multiple threads in this forum about zero hours contracts and their (small and decreasing BTW) affect but if you're honestly interested the details and figures including the breakdown of hours etc. is on the official UK government website.
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/march2019

phillw

gfplux wrote: »

How much do zero contracts have to do with this or is it to do with the way employment or unemployment is counted?

unemployment figures don't reflect whether there are people who can take a job.

You aren't unemployed if you're at university for instance, so if you get a job while you're at university then you don't reduce unemployment.

People getting a second job doesn't reduce unemployment either.

I think you also get moved out of unemployment figures if you've been unemployed for a while, or if the DWP pursuade you to go self employed (even though you may not then find any paid work).

Zero hours contracts also play their part, when amazon were forced to pay higher hourly wages they cut the working hours so the employees were taking home less money. The tactic is to scare people into not asking for a raise, in case it happens to them too.

michaels

gfplux wrote: »

I understand that there is no upward pressure on wages. Why is that. I have in the past always understood that full employment creates this which then further adds to inflation.
Is there something different about full employment now that is different to the past.
How much do zero contracts have to do with this or is it to do with the way employment or unemployment is counted?

Perhaps because there is not low unemployment amongst those eligible to work in the UK? I understand there are at least 17m unemployed people who could come and work in the UK if there was a suitable vacancy plus up to 300m, many from lower wage economies, who even though employed could come and work in the UK if they saw an attractive salary. Sounds like a fair bit of slack.

phillw

michaels wrote: »

Perhaps because there is not low unemployment amongst those eligible to work in the UK? I understand there are at least 17m unemployed people who could come and work in the UK if there was a suitable vacancy plus up to 300m, many from lower wage economies, who even though employed could come and work in the UK if they saw an attractive salary. Sounds like a fair bit of slack.

It's a zero sum game though, once you cut those out then inflation hits and your increased wages are the same in real terms. On the flip side you've lost the ability to compete internationally, you can only hope for a sterling crash which also drives inflation.

It's almost like there isn't anything you can do to gain an advantage over other countries without it biting you & over time we might have to give up the advantages we achieved through invasion and theft (even though we didn't even lose the war!!!!!).

worldtraveller

Not posted for some time now, so here we go:

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI) 12-month rate was 1.5% in November 2019, unchanged from October 2019.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.5% in November 2019, unchanged from October 2019.
• The largest contribution to the CPIH 12-month inflation rate in November 2019 came from housing, water, electricity, gas and other fuels (+0.36 percentage points).
• The largest downward contributions to change in the CPIH 12-month inflation rate between October and November 2019 came from accommodation services and tobacco.
• The largest offsetting upward contributions came from food, and recreation and culture, where prices rose this year by more than a year ago.
• The Consumer Prices Index (CPI) 12-month rate was 1.5% in November 2019, unchanged from October 2019.

ONS

worldtraveller

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI) 12-month rate was 1.3% in December 2019, down from 1.5% in November 2019.

Main Points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.4% in December 2019, down from 1.5% in November 2019.
• The largest contribution to the CPIH 12-month inflation rate in December 2019 came from housing, water, electricity, gas and other fuels (+0.36 percentage points).
• The largest downward contributions to the change in the CPIH 12-month inflation rate between November and December 2019 came from accommodation services and clothing.
• The Consumer Prices Index (CPI) 12-month rate was 1.3% in December 2019, down from 1.5% in November 2019.

ONS

snowqueen555

Rent inflation is very high, millions of low earners who rent rooms/houses are seeing quite large increases to their living costs.