UK inflation in shock jump to 4.4pc and borrowing rises

[rover 623gsi]

DJC said:

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.

I am not having a whinge. I merely disagreeing with your statement that you can buy shoes for a tenner that will last a year - and your insuation that footwear is some kind of luxury item.

And as someone else pointed out, most people need more than one pair of footwear at any given time.

[superkartracer]

Just spent £700 odd on Church's if that helps, Oh and £220 on some Scarpa Manta's and another £300 on some Omega's and to finish off some new Lakes to go with my new Speedplays that cost £300.

Shoes will cripple the UK

[superkartracer]

BUT, i'll never have to replace them for a good 20 years

[ringram]

Surely with some mortgage rates under inflation banks are losing money on loans? At the end of the year even taking into account the interest rate charged the value of the capital is eroded!? They should be putting up rates anyway...

[NoelWatson]

ringram said:

Surely with some mortgage rates under inflation banks are losing money on loans? At the end of the year even taking into account the interest rate charged the value of the capital is eroded!? They should be putting up rates anyway...

What does inflation have to do with what banks are borrowing at (in these current times)?

[johnfm]

Allowing for the VAT increase and fule price increases, I understand inflation is a much less rampant figure.

Sounds like a PH inflation induced panic has set in.

The only real issue for the man on the street is price inflation on things he cannot control - petrol/diesel/gas & electricity.

Everything else (especially food) is easily controllable - you don't HAVE TO buy the standard basket that the economists use to calculate inflation.

Every day/week at waitrose/ASDA/Sainsburys/Tesco/Mossisons there are enough deals on milk,break, meat, cereals, etc etc that my grocery bill hasn't increased at all for the last year at least.

Eating out is more expensive - unless you use the plethora of voucher offers for Pizza Express/Strada/ etc etc

Drinking booze at home has never been cheaper.

If savers don't want their savings eroded, there are cash ISAs, stocks & share ISAs etc.

Stop the whinging already.

It is what it is. If you are struggling, get a better job.

If your job is greeat and you don't like the politics, move overseas.

If none of that is to your taste, run a campaign for office and become an MP.

Pistoneheads: whinging about the economy matters.

[Pork]

johnfm said:

Good stuff

Of the above, the one that I just dont agree with is the saving thing. Savings are risk free, stocks and shares ISA's are not. Would a cash ISA offer inflation beating interest rates?

[johnfm]

I think Halifax do 3% cash ISA at the moment.

[fido]

johnfm said:

I think Halifax do 3% cash ISA at the moment.

It's only available to current account holders. TBH I couldnt' be ar3ed to faff around with loads of accounts.

[Pork]

johnfm said:

I think Halifax do 3% cash ISA at the moment.

So having a cash ISA isnt really an option as you'd effectively be losing money by having it in the bank.

So unless you like shares, as a save you've getting shafted.

[johnfm]

Pork said:

johnfm said:

I think Halifax do 3% cash ISA at the moment.

So having a cash ISA isnt really an option as you'd effectively be losing money by having it in the bank.

So unless you like shares, as a save you've getting shafted.

getting shafted?

Do you mean the 'value of your savings is being marginally eroded IF you happen to also buy the exact basket of goods the the economists use to calculate inflation'?

As I said, the only hit that pensioner savers will suffer is fuel costs (gas, electric, petrol/diesel if they run a car).

If they are bus users, the onlky impact on their savings is gas/electric - as they will shop around for food - cat food is often on sale these days

[Pork]

johnfm said:

getting shafted?

Do you mean the 'value of your savings is being marginally eroded IF you happen to also buy the exact basket of goods the the economists use to calculate inflation'?

As I said, the only hit that pensioner savers will suffer is fuel costs (gas, electric, petrol/diesel if they run a car).

If they are bus users, the onlky impact on their savings is gas/electric - as they will shop around for food - cat food is often on sale these days

Getting shafted as in pretty much everything I buy is going up and the cash set aside as a deposit is erroding as house prices are remaining high (or even increasing) as inflation is not being controlled.

I believe the basket of goods selected is nonsense and lost faith in it long ago - having iPods etc included where prices fall year on year but you dont buy every year let alone every week is just nonsensicle.

Things like fuel, going to the cinema, a few pints, car insurance, new shoes (a nod to the above)..... pretty much anything is going up in value. I accept that maybe some of my perceptions are as a result of media influence, but I do find myself having moment of "what? HOW MUCH!?" from time to time.

Why should risk averse savers pay for wreckless borrowers for years to come?

I suspect the answer to that is "becasue we can't afford not to"

[maser_spyder]

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

Fuel inflation = 1.4%

Pull the other one!

[ringram]

NoelWatson said:

ringram said:

Surely with some mortgage rates under inflation banks are losing money on loans? At the end of the year even taking into account the interest rate charged the value of the capital is eroded!? They should be putting up rates anyway...

What does inflation have to do with what banks are borrowing at (in these current times)?

Nothing at present, though in theory it should.

Im simply noting that banking returns are also eroded due to inflation as are everyone else's in the country.

[NoelWatson]

ringram said:

NoelWatson said:

ringram said:

Surely with some mortgage rates under inflation banks are losing money on loans? At the end of the year even taking into account the interest rate charged the value of the capital is eroded!? They should be putting up rates anyway...

What does inflation have to do with what banks are borrowing at (in these current times)?

Nothing at present, though in theory it should.

Im simply noting that banking returns are also eroded due to inflation as are everyone else's in the country.

I'm not sure I follow your logic

[Digga]

superkartracer said:

Just spent £700 odd on Church's if that helps...

That's two pairs at 'shop' prices, right?

I get mine here: http://www.herringshoes.co.uk/product-list.php?bra...

[NoelWatson]

Digga said:

hat's two pairs at 'shop' prices, right?

I get mine here: http://www.herringshoes.co.uk/product-list.php?bra...

How much do you save buying from there?

[Ozzie Osmond]

ringram said:

Im simply noting that banking returns are also eroded due to inflation as are everyone else's in the country.

Surely that could only apply to any loans made by banks where the bank's "spread" has turned negative? And that's no more of a risk now than at any other time?

Prudent management of their businesses should keep them out of trouble. Oh, I see what you mean.....

[Digga]

NoelWatson said:

Digga said:

hat's two pairs at 'shop' prices, right?

I get mine here: http://www.herringshoes.co.uk/product-list.php?bra...

How much do you save buying from there?

Well iff they have the style/size you want, then IIRC about £50 a pair - or was when I last looked.

I got a pair of black brogues, which I had to go to a shop - Austin Reed's in Brumagem - for, to get the right size at about £320, and then bought an identical pair of brown brogues a few months later for about £270 ish. (All IIRC, as it was a while back, but I remember the saving was worth it and the service online was decent enough. You just need to know your sizing.)

[superkartracer]

Digga said:

hat's two pairs at 'shop' prices, right?

I get mine here: http://www.herringshoes.co.uk/product-list.php?bra...

Yes but had 4 pairs from the the Village , cracking shoes tho, even if i lost part of my heel to blisters..

About £200 a pair, these were on offer rather than factory seconds, i'd not pay the full £350 price tbh, i like a deal.