Real Inflation 9.5 %

lostinrates

Sir_Humphrey wrote: »

Also, other prices rises caused by oil are not necessarily passed on to customers.

But then where do they go, these expenditures?

pamaris

What I want to know is, does the MPC have any choice but to raise interest rates now? They are supposed to be controlling inflation! It is obvious to all that they aren't controlling mortgage rates anyway, so will they actually take control of this situation now? It is getting out of hand.

I am stunned at the cost of food. We came here from the USA 18 months ago and I thought it was expensive then (twice the price of food there). I've taken control of the grocery bill by preparing lots of beans & chickpeas, but the costs are still ridiculous.

My OH is due a salary review next month and I'm dying to see what they'll come up with.

Clothes are supposedly cheap but I don't feel that they are... especially since the kids need them every 3 months.

Not trying to be a whinger here... but anyway my main question is... will the BoE do what it needs to do? And will it make a difference? Will it cause job losses? I've never lived through inflation like this before.

The grocery stores have hopped on the bandwagon now... they're all comparing the price of their "baskets"... I think I saw a Tesco advert that used the tagline "inflation busting prices!".

Sir_Humphrey

obsessed_saver wrote: »

Technologies like this are not viable for private companies, and the government has to take the long view and invest in the infrastructure and offer subsidies.

Personally I completely agree with this.

A quick note on how public spending works. Tax money is paid into a central pot, and is distributed to spending departments in negotiation with the Treasury. Therefore, money collected in a certain area may be spent anywhere. Collecting tax with a view to spending in a particular area is called hypothecation. Whether or not this is a good idea, it would be implemented over the dead body of the Treasury.

Sir_Humphrey

lostinrates wrote: »

But then where do they go, these expenditures?

Reduced margins. Some companies can afford to take the hit to keep up volume, others have to pass them on. It depends on the individual situation of the company.

For instance, landlords faced with higher mortgage costs cannot always pass these on, as the rental rate is set by the market, not a cost plus mark-up.

Dan:_4

Expect interest rates to be cut by 0.25 in July.

PasturesNew

Dan: wrote: »

Expect interest rates to be cut by 0.25 in July.

July 2016.

jimc_2

obsessed_saver wrote: »

hydrogen filling stations for cars like the first production hydrogen fuel cell car from Honda

Nah!

If you've got to go hydrogen-powered this is the one to get! The hydrogen fuel-cell Morgan.

lostinrates

Sir_Humphrey wrote: »

Reduced margins. Some companies can afford to take the hit to keep up volume, others have to pass them on. It depends on the individual situation of the company.

For instance, landlords faced with higher mortgage costs cannot always pass these on, as the rental rate is set by the market, not a cost plus mark-up.

Ok, I agree some slack is taken, particularly by smaller businesses, in reduced margins, but by no means all. Fuel for example, record profits for fuel suppliers (domestic and oil) and increased costs for providing that fuel.....result? Higher bills for consumers!

I really don't know how many homes are owned mortgage free by non businesses or LA and HA. Nor, how many homes are privately

owned without mortgages. But of course ubstantial numbers of people privately owning without mortages have at some time had them but paid them off (and good for them) especially in recent times I would hope where rates ahve been good. These would be inteesting figures for a social understaning as much as nything else.

Any way, my original point is that though I DO use fuel for my car, I do not pay a mortage. Fuel an food increases have hit us noticably. Because for five days a week my groceries are very small, it seems to make me really aware of a percentage increase from my 'allowance' for that.

I'm a LONG LONG way from any breadline bu that doesn't mean I don't notice an increase. Incidently our groceries are up well over 10% for he same week time list (I'm pretty damn boring on my eat alone list:o and it almost never changes)

jamie304

pamaris wrote: »

What I want to know is, does the MPC have any choice but to raise interest rates now? They are supposed to be controlling inflation! It is obvious to all that they aren't controlling mortgage rates anyway, so will they actually take control of this situation now? It is getting out of hand.

They can write a letter to the Chancellor saying "we wont raise interest rates now in case it causes a recession and inflation will then undershoot the target for a lengthy period, so better to have high inflation for a few months"

John_Pierpoint

There is an overblown bubble of credit chasing a shortage of oil, minerals and grain.
The simple truth is that we in the "service" economy world have to face up to a cut in our living standards of 5 - 10%, perhaps more if the raw material suppliers manage to keep the upper hand.

No politician will say who is going to carry the major burden of this cut.
As usual it will tend to be those without the power to fight back who will suffer.
Not a good time to be a single parent or a pensioner.