Inflation shock leaves markets fearing three interest rate rises this year

ManAtHome

I'll believe it when they stop trotting out the "inflation will come down in the medium term" - they've been saying that since 2005, and errrmm it'still going up (average CPI 2.3+ for the last 2 years, probably higher for the next 2, but maybe hits target around 2020 ish, so plenty of room to reduce rates now?).

simcla

i believe that fuel cost increases impact on inflation more than central BOE rises rate changes because BOE interest rate changes are having little or no effect on the Banks rates on either borrowing or lending rates and fuel cost increases are affecting businesses whether or not they are effected by the banks interest rates (i.e in debt and repaying debt(and effected), or not in debt and withdrawing profits (not effected). Fuel cost increases effect business's all business cost base, either making them cut profit margins, or increase prices and hence inflation., and the government sets the price of fuel in this country.....

jamescredmond

meanmachine wrote: »

Do you actually have an original thought in your head, or do you only believe what estate agents tell you?

12 months ago the Nationwide insisted 2008 would see zero property inflation.

6 months ago they predicted falls of under 5%

Last month they were predicting falls of around 7/8% this year alone.

Next month, who knows what they'll say.

You do understand that banks and estate agents always talk up the market, no matter what, don't you, or are you just being trollishly naive?!!

this is a needless and offensive post, and does nothing to help anyone who doesn't follow the market, but is willing to try.

not my job to monitor this board, but I have to tell you that holier-than-hou replies, such as yours, helps no-one new to the game. quite the reverse: it puts would-be mser's off.

really helpful, eh?

epz_2

simcla wrote: »

i believe that fuel cost increases impact on inflation more than central BOE rises rate changes because BOE interest rate changes are having little or no effect on the Banks rates on either borrowing or lending rates and fuel cost increases are affecting businesses whether or not they are effected by the banks interest rates (i.e in debt and repaying debt(and effected), or not in debt and withdrawing profits (not effected). Fuel cost increases effect business's all business cost base, either making them cut profit margins, or increase prices and hence inflation., and the government sets the price of fuel in this country.....

yeah but most of the stuff we buy comes from other countries and will have an even bigger effect.

while the cost of labor is low they typically woulnt have as efficient production lines so a 5 x increase in the cost of oil /energy hits harder, doesnt help that china has 10% wage inflation and then there is the shipping costs which are also substantially effected by fuel costs.

mr.broderick

jamescredmond wrote: »

this is a needless and offensive post, and does nothing to help anyone who doesn't follow the market, but is willing to try.

not my job to monitor this board, but I have to tell you that holier-than-hou replies, such as yours, helps no-one new to the game. quite the reverse: it puts would-be mser's off.

really helpful, eh?

It's just frustration. Mean machine is one of the good guys really.

meanmachine_2

jamescredmond wrote: »

this is a needless and offensive post, and does nothing to help anyone who doesn't follow the market, but is willing to try.

not my job to monitor this board, but I have to tell you that holier-than-hou replies, such as yours, helps no-one new to the game. quite the reverse: it puts would-be mser's off.

really helpful, eh?

Apols if offence was caused, but the naivety of some people is staggering sometimes.

"Phil and Kirsty from Property Ladder say....", jaysus.

I should think it's in the spirit of Martin Lewis' credo of people thinking for themselves that they question just who and just why people like Kirsty would say such utter garbage.

meanmachine_2

jamescredmond wrote: »

this is a needless and offensive post, and does nothing to help anyone who doesn't follow the market, but is willing to try.

really helpful, eh?

Actually, I've just re-read my post and - yes, the tone is off - but what I'm saying is bang on, so if a little straight talking gets people to think about where so-called "experts" are coming from, then that's a good thing.

meanmachine_2

La_Contessa wrote: »

I am not interested in your insults... what exactly is the problem that you have with me,

I am not a dumbhead nor a debt junkie as you seem to have suggested in another post

I have no interest in you nor your comments, move on... I have a right to express my opinion too and unlike yourself don't go round pulling others down

Again, my apologies.

To be honest, I don't know what your opinions are. I do know from your post what the opinions of Nationwide and Phil and Kirsty are, but as I rather rudely explained, these types of people will always put a gloss on things.

One's a lender, the other a, well, let's be kind and call them "property presenter".

But I'll try to be kinder in future.

tradetime

Tue Jun 17 9:30am
............................Forecast.........Previ ous........Actual
CPI y/y....................3.2%..............3.0%.............3.3%
Core CPI y/y.............1.5%..............1.4%.............1.5%
RPI y/y....................4.2%..............4.2%.............4.3%

Some comfort for anyone with an RPI linked account.
Merv writing to his Darling :eek: I think they'll exchange a few letters in the coming quarters.

An overview of this months figures



EU view on inflation

Treadmill

Wasn't too long ago analysts where predicting up to 1.5% intesrest rate cuts by the end of the year, what are they predicting now ?