UK inflation in shock jump to 4.4pc and borrowing rises

[Fittster]

Merv is a hopeless wker:

"British inflation jumped to a shock 28-month high of 4.4pc and public borrowing recorded its worst February since records began last month, official data showed on Tuesday.

The news comes as George Osborne puts the final touches to his 2011 Budget on Wednesday.
February's surprise rise will worry the Bank of England which has been battling to bring inflation back to its 2pc target. It will also sharpen the debate over whether interest rates should rise sooner rather than later to tame price pressures.

The Office for National Statistics said the worse than expected rise in consumer price inflation was driven by higher housing costs, domestic heating bills and clothing prices.

On Monday an Institute for Fiscal Studies (IFS) report revealed that the average British household's "real" income – what is coming in after inflation is taken into account – will have fallen by 1.6pc over the three years to the end of 2011.

CPI rose to 4.4pc in February, up from 4pc in January. Economist had forecast a rise to 4.2pc. Retail price inflation (RPI), which is based on a longer-running index and is used as a starting point for many wage negotiations, rose to 5.5pc from 5.1pc, its highest since July 1991.

[allgonepetetong]

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

It's essential items (food, clothing, fuel) and VAT that's pushing CPI up not increased demand.

It may have a small effect on the value of the pound, but the value against the USD is at 1.63 already, how much higher should it have to be?

[BoRED S2upid]

allgonepetetong said:

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

Increase bankrupcy applications?

[Badgerboy]

allgonepetetong said:

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

The money that I have prudently saved away may actually start generating some cash?

[Brighton Derly]

allgonepetetong said:

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

The problem is that savers are being penalised while the feckless 'I want it all and I want it now' brigade are effectively having their debts subsidised by the government to prevent a slew of defaults that would cause another banking crisis.

[Fittster]

Brighton Derly said:

allgonepetetong said:

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

The problem is that savers are being penalised while the feckless 'I want it all and I want it now' brigade are effectively having their debts subsidised by the government to prevent a slew of defaults that would cause another banking crisis.

And that feckless brigade includes the banks and government who have rather a lot of power.

[don4l]

allgonepetetong said:

We've had this discussion before I know, but what use, apart from squeezing people with debt further, will increased interest rates be?

It's essential items (food, clothing, fuel) and VAT that's pushing CPI up not increased demand.

It may have a small effect on the value of the pound, but the value against the USD is at 1.63 already, how much higher should it have to be?

The main increases were in clothing and footwear. I would think that most money spent on these items is not essential at all.

I could easily spend a lot less on food if I decided to. I could turn the heating down a bit, and I don't need to drive a car that gives poor MPG.

Don
--

[Fittster]

anonymous said:

[redacted]

Inflation is supposed to be controlled by the independent BoE.

On the other hand as Nixon-era Fed chief Arthur Burns said, “If we exerted our ‘independence,’ we’d certainly lose our independence.”

[Sticks.]

VAT increase won't have helped.

[DJC]

Footwear linked?

FOOTWEAR?????????????????????

Wtf is essential about fking footwear? You can buy a pair of shoes for a tenner in Jan that will last you till Dec. Dear God in the name of heaven and hell can someone please tell me how in the name of all thats holy how that affects inflation?

Now, possibly, just possibly its been the 20% increase in the price of fuel over the past year. Maybe. Possibly.

Its just a random guess.


There are times, I swear to God there are times when anybody who declares themselve a financial expert in the UK wants taking out into Trafalgar Square and shooting for the general safeguarding of the nation. No, that doesnt mean a war on bankers, because in my general experience those that are actually rather competent in the money gam by and large keep their traps shut and their heads down. Its the walking, talking motor mouths who appear all over the media, papers and govt advisors that should be in the queue.

[MadMullah]

there's little to no incentive for people to save right now. i save from my menial wage a good 30-40% of it and unless i need to make an expenditure i dont do the splashin out

but whats the point of keeping it in a bank etc if i'm gettin a petty return in my investment

rewarding the careless in soceity is a common trait that needs to be stopped.

[tomw2000]

The figures for March are going to be woeful then - my OH hit Bicester shopping village in March and bought loads of shoes she didn't need.

[DJC]

tomw2000 said:

The figures for March are going to be woeful then - my OH hit Bicester shopping village in March and bought loads of shoes she didn't need.

She's an idiot then as the wifey and I hit Bicester shopping village last week or so and there was nothing on sale at decent prices, in fact it seemed to be remarkably expensive compared to what can be on offer there.

So Id hazard a guess she got bugger all of decent quality at a decent price.

[Prof Prolapse]

DJC said:

tomw2000 said:

The figures for March are going to be woeful then - my OH hit Bicester shopping village in March and bought loads of shoes she didn't need.

She's an idiot then as the wifey and I hit Bicester shopping village last week or so and there was nothing on sale at decent prices,

His wife is an idiot because you and your wife went to the same shopping centre decided shoes were too expensive?

[Digga]

DJC said:

tomw2000 said:

The figures for March are going to be woeful then - my OH hit Bicester shopping village in March and bought loads of shoes she didn't need.

She's an idiot then as the wifey and I hit Bicester shopping village last week or so and there was nothing on sale at decent prices, in fact it seemed to be remarkably expensive compared to what can be on offer there.

So Id hazard a guess she got bugger all of decent quality at a decent price.

You're all mad for 'conforming' and wasting valuable free time 'shopping' (I detest that adjective) for crap you don't really need. Half the country is at it, and most of them can ill afford to be.

[Fittster]

Digga said:

DJC said:

tomw2000 said:

The figures for March are going to be woeful then - my OH hit Bicester shopping village in March and bought loads of shoes she didn't need.

She's an idiot then as the wifey and I hit Bicester shopping village last week or so and there was nothing on sale at decent prices, in fact it seemed to be remarkably expensive compared to what can be on offer there.

So Id hazard a guess she got bugger all of decent quality at a decent price.

You're all mad for 'conforming' and wasting valuable free time 'shopping' (I detest that adjective) for crap you don't really need. Half the country is at it, and most of them can ill afford to be.

With inflation running at around 5% is it sensible to keep your money in a bank account?

[Digga]

Fittster said:

With inflation running at around 5% is it sensible to keep your money in a bank account?

Errrrrrr, Bank, or spunk it all on shoes - those are my only choices?

[Zip106]

Oh st, it's my fault sorry.
I bought a new pair of Brogues a few weeks back.

And I drove to shop so had to pay for some petrol, too.

[fido]

DJC said:

There are times, I swear to God there are times when anybody who declares themselve a financial expert in the UK wants taking out into Trafalgar Square and shooting for the general safeguarding of the nation. No, that doesnt mean a war on bankers, because in my general experience those that are actually rather competent in the money gam by and large keep their traps shut and their heads down. Its the walking, talking motor mouths who appear all over the media, papers and govt advisors that should be in the queue.

That was the essence of my point on the other thread ('Large Houses with White Interiors'). Instead of finding new ways to deal with the problems at hand .. spend less? .. drive a bit less? .. we bleat at the government in power, or as before just vote in the 'easier' option that will deliver our 'wants' regardless. I suppose this is what Big Society wasn't about. Granted there isn't much you can do about the cr8ppy returns on your savings but blowing it on shoes isn't going to help is it?

[tomw2000]

DJC said:

She's an idiot then as the wifey and I hit Bicester shopping village last week or so and there was nothing on sale at decent prices, in fact it seemed to be remarkably expensive compared to what can be on offer there.

So Id hazard a guess she got bugger all of decent quality at a decent price.

Thanks, I'll pass on your kind words.

But it's her earnings and she can spend it on what she likes as far as I'm concerned.

I don't think (m)any of the things she bought were discounted...

If you and 'wifey' want bargains, ebay is your friend.