Inflation up

fatbeetle

Rising fuel and food prices helped to push last month's inflation rate to the highest since September 2013.
Inflation as measured by the Office for National Statistics' Consumer Prices Index (CPI) jumped to 2.3% in February - up from 1.8% in January.

http://www.bbc.co.uk/news/business-39337909

Any thoughts?

ffacoffipawb

fatbeetle wrote: »

Any thoughts?

RPI is up to 3.2% - glad I renewed one of my index linkers last May !!!

Another one is renewable in November.

No brainer, better than savings accounts!!!

LHW99

Somewhere around the level the BoE has been tasked to get it to for some time.

fun4everyone

Almost all savings/regular savings/current accounts are now losing money for us end consumers. Only a rate of 3% or better is actually increasing your purchasing power, and the amount of accounts at that rate is going down by the day.

What to do now then if you have spare cash over and above the accounts at 3-5%? Either accept your net worth will reduce or invest in stocks and shares/p2p to try and beat this inflation. Property is another option. The BOE could raise interest rates but that sadly does not appear to be happening any time soon. They have been targeting this level of inflation.

Thrugelmir

fatbeetle wrote: »

Any thoughts?

Be a squeeze on disposable incomes for many.

michaels

fun4everyone wrote: »

Almost all savings/regular savings/current accounts are now losing money for us end consumers. Only a rate of 3% or better is actually increasing your purchasing power, and the amount of accounts at that rate is going down by the day.

What to do now then if you have spare cash over and above the accounts at 3-5%? Either accept your net worth will reduce or invest in stocks and shares/p2p to try and beat this inflation. Property is another option. The BOE could raise interest rates but that sadly does not appear to be happening any time soon. They have been targeting this level of inflation.

Then again with mortgage rates as low as 1% for a 2 year fix everyone who owes money on their house is seeing the real value of their debt eroded nicely

WE are also seeing inflation in inflation threads with 3 on the go this month

Carl31

up highest since 2013, in other words, it goes up and down, and we have had up before Brexit, and while we had low IR

Petrol costs have gone back up, one of the main drivers, and we know why that was. Not really a suprise is it? Im sure Brexit will be the answer though

A_Medium_Size_Jock

German inflation 2.2%, the highest for them in four and a half years.
http://www.euronews.com/2017/03/01/germany-inflation-rises-unemployment-falls

westernpromise

So unemployment's at a record low, inflation is low, house prices haven't crashed and the deficit has come down 8% in 7 years to the point where everything the state pays for is covered except interest on the debt.

I'd call that a spectacularly good bit of work.

davomcdave

michaels wrote: »

Then again with mortgage rates as low as 1% for a 2 year fix everyone who owes money on their house is seeing the real value of their debt eroded nicely

It only helps if wages after tax are increasing faster than your mortgage interest rate. They are at the moment which is good news of course but it wasn't the case a few years back.

Wage growth is slowing just as inflation is rising. Real wages increased at a rate of 2.2% over the past year. RPI, meant to be a measure of the change in the cost of living, increased by 3.2% over the past year.

michaels wrote: »

WE are also seeing inflation in inflation threads with 3 on the go this month

davomcdave

westernpromise wrote: »

So unemployment's at a record low, inflation is low, house prices haven't crashed and the deficit has come down 8% in 7 years to the point where everything the state pays for is covered except interest on the debt.

I'd call that a spectacularly good bit of work.

Yup. As much as people are moaning the UK economy is in a good place right now. Even income inequality has come down as the Tories have increased the minimum wage and bankers continue to feel the pain through remuneration at risk (bonuses) being cut. Income inequality is at its lowest level since Thatcher was in despite what the Guardian will have you believe.

We'll see what happens as inflation rises across the world. Cutting interest rates was always the easy bit, increasing them again is far harder.