UK inflation in shock jump to 4.4pc and borrowing rises

[Pork]

Badgerboy said:

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

You're the least of their worries. They actually don't want people to have savings and its getting to the point where you're better off spending money. That, IMO, is a fundamental flaw. Surely we should live within our means?

Fittster said:

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

Nope, the Gubberment have made it that savings are becoming worthless. It annoys me that pensioners and savers are going to get royally bummed by inflation and the govt just doesnt care (and you could argue cant do anything about it anyway).

[dave9]

how on earth could most of us guess it was going to be higher than the estimates by the 'pros'.

I guess it will go up in march again too

RPI at 5.5%!!!!!!!!!!!!!!!!!!!!!!!

don't know how much longer they can do this

[fido]

http://www.telegraph.co.uk/finance/economics/inter...

Ok, assuming the BoE rate reaches the heady heights of 1.25% by the end of this year .. should one hold off on a few purchases this year - house move, car ?

[Jasandjules]

fido said:

http://www.telegraph.co.uk/finance/economics/inter...

Ok, assuming the BoE rate reaches the heady heights of 1.25% by the end of this year .. should one hold off on a few purchases this year - house move, car ?

Can you guarantee that you will still have a job this time next year? Or do you have cash in the bank to purchase the house/car outright?

[Engineer1]

Fido, move if the right home comes up etc, no point holding out against possible future guesses as chances are you will guess wrong more than right.

[rover 623gsi]

DJC said:

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.

since when was footwear not essential? Do you go round in bare feet? And pray tell, where can you get a pair of shoes for a tenner that last a year? Both of my kids have had to have new shoes since the start of their school year and they were £30 a time.

[dave9]

rover 623gsi said:

since when was footwear not essential? Do you go round in bare feet? And pray tell, where can you get a pair of shoes for a tenner that last a year? Both of my kids have had to have new shoes since the start of their school year and they were £30 a time.

and you don't need one pair of shoes.

minimum is really the following
trainers/pumps - say £35
black shoes - say £30
brown shoes - £30
wellies - dunno
flip flops for holidays - not much
maybe some waterproof boots/hiking boots - £40

it all adds up and it's obviously weighted too

i'd say footwear should definitely be included

[OllieC]

hey I work in a shoe factory, easy on the shoes haha

seriously though inflation has been high for some time, just no-one wanted to admit it. hence fudging the figures with random stuff (like shoes and consumer electronics) to try and mask the costs of food, fuel, and other such things we cant do without

[Manks]

DJC said:

Footwear linked?

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

We should all wear Timberlands. Same price in 2011 as they were in 1990.

[DJC]

rover 623gsi said:

since when was footwear not essential? Do you go round in bare feet? And pray tell, where can you get a pair of shoes for a tenner that last a year? Both of my kids have had to have new shoes since the start of their school year and they were £30 a time.

Ebay? Brand New With Tags footwear can be got for a tenner on there.
Brantano do cheap shoes.
Decathalon do cheap shoes.
Tesco do cheap shoes.

Its pretty easy actually.

[rover 623gsi]

DJC said:

Ebay? Brand New With Tags footwear can be got for a tenner on there.
Brantano do cheap shoes.
Decathalon do cheap shoes.
Tesco do cheap shoes.

Its pretty easy actually.

I have a pair of smart black work shoes from Tescos - £25.
I have a pair of walking boots form Decathlon - £30.

Brantano? I don't see anything for a tenner here http://www.brantano.co.uk/Shop/brantano_uk/Men/Cho...

Ebay? nothing for a tenner here either http://clothes.shop.ebay.co.uk:80/Mens-Shoes-/6385...

I am well-versed in looking for bargains, but I don't think that in 21st century Britain footwear should be viewed as a luxury.

Edited by rover 623gsi on Tuesday 22 March 22:28

[fido]

Jasandjules said:

Can you guarantee that you will still have a job this time next year? Or do you have cash in the bank to purchase the house/car outright?

In my industry a job is only as safe as the next few paycheques. House move would be funded by cash & similar sized mortgage. Cost of car is an irrelevance in the scheme of things (it's not going to be a 911) though i'm predicting that gas-guzzlers are going to depreciate that bit quicker over the next year. Might just play it safe and ride out this year, an perhaps budget for a ground floor extension. One thing that doesn't seem to be getting cheaper is builders.

[gamefreaks]

Fittster said:

February's surprise rise will worry the Bank of England which has been battling to bring inflation back to its 2pc target.

No it hasn't, unless you call doing fk all about it 'battling'!!!

[Lost soul]

They mentioned that fuel inflation is 1.4 %

how on gods earth is that all it it

[maser_spyder]

Lost soul said:

They mentioned that fuel inflation is 1.4 %

how on gods earth is that all it it

Because if they didn't fudge the figures, and gave 'real world' examples, there would be chaos.

[DJC]

rover 623gsi said:

I have a pair of smart black work shoes from Tescos - £25.
I have a pair of walking boots form Decathlon - £30.

Brantano? I don't see anything for a tenner here http://www.brantano.co.uk/Shop/brantano_uk/Men/Cho...

Ebay? nothing for a tenner here either http://clothes.shop.ebay.co.uk:80/Mens-Shoes-/6385...

I am well-versed in looking for bargains, but I don't think that in 21st century Britain footwear should be viewed as a luxury.

Edited by rover 623gsi on Tuesday 22 March 22:28

My last pair of footwear cost me £5 at Brantano.
Ive had numerous pairs of cheap trainers from Decathalon, dont think Ive ever paid more than £20 for them.

Either way, if you only paid £25 for a pair of black shoes at tesco then it isnt exact grounds to whinge, they will last the year and next year you can probably buy the same again.

[Lost soul]

maser_spyder said:

Because if they didn't fudge the figures, and gave 'real world' examples, there would be chaos.

So in other words it is all a load of bollax

[NoelWatson]

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?

Strengthen sterling

[NoelWatson]

fido said:

http://www.telegraph.co.uk/finance/economics/inter...

Ok, assuming the BoE rate reaches the heady heights of 1.25% by the end of this year .. should one hold off on a few purchases this year - house move, car ?

It should be ~8%

http://www.cityam.com/news-and-analysis/allister-h...

"In ordinary circumstances, real, inflation-adjusted short-term interest rates are at least 2.5 per cent – which means that once inflation is added in, the Bank’s base rate ought to be at around eight per cent at the moment"

[Pork]

Lost soul said:

maser_spyder said:

Because if they didn't fudge the figures, and gave 'real world' examples, there would be chaos.

So in other words it is all a load of bollax