inflation rate rises to 4.5%
Discussion
Another huge fail for Merv and the crew.
"The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March.
The rise was due to a jump in transport costs, particularly air and sea fares, and alcohol and tobacco.
However, the Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - fell slightly to 5.2% from 5.3% in March.
The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month.
CPI is now at its highest level since October 2008.
The Office for National Statistics (ONS) said "by far the largest upward effect" on prices came from air transport, where fares rose by 29% between March and April. Sea fares rose by 22.3%.
It said the fact that Easter was in April this year but in March last year partly explained the jump in prices.
Alcoholic drinks and tobacco rose by a record 5.3% in April.
These price rises more than offset a 1.3% fall in clothing and footwear prices."
http://www.bbc.co.uk/news/business-13421614
"The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March.
The rise was due to a jump in transport costs, particularly air and sea fares, and alcohol and tobacco.
However, the Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - fell slightly to 5.2% from 5.3% in March.
The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month.
CPI is now at its highest level since October 2008.
The Office for National Statistics (ONS) said "by far the largest upward effect" on prices came from air transport, where fares rose by 29% between March and April. Sea fares rose by 22.3%.
It said the fact that Easter was in April this year but in March last year partly explained the jump in prices.
Alcoholic drinks and tobacco rose by a record 5.3% in April.
These price rises more than offset a 1.3% fall in clothing and footwear prices."
http://www.bbc.co.uk/news/business-13421614
Fittster said:
garyhun said:
Useless f
kers. Just raise interest rates you mongs.
And risk bring down the house of cards built on cheap credit? Merv might not get those nice lucrative executive position when he leaves the BoE if he did that.kers. Just raise interest rates you mongs.greygoose said:
Fittster said:
garyhun said:
Useless fkers. Just raise interest rates you mongs.
And risk bring down the house of cards built on cheap credit? Merv might not get those nice lucrative executive position when he leaves the BoE if he did that.kers. Just raise interest rates you mongs.ks.thinfourth2 said:
Please explain how doubling my mortgage will make flights cheaper
Just curious
It wont, us raising interest rates wont bring down the price of fuel which is the main inflationary pressure. All it will do is stunt the already faltering recovery. Just curious
Nobody will invest in the UK until we rule out further quantitive easing so an interest rate rise wont help our appalling exchange rate either.
We are basically FUBAR'd
Bluequay said:
thinfourth2 said:
Please explain how doubling my mortgage will make flights cheaper
Just curious
It wont, us raising interest rates wont bring down the price of fuel which is the main inflationary pressure. All it will do is stunt the already faltering recovery. Just curious
Nobody will invest in the UK until we rule out further quantitive easing so an interest rate rise wont help our appalling exchange rate either.
We are basically FUBAR'd
Sounds like a brilliant idea
Bluequay said:
It wont, us raising interest rates wont bring down the price of fuel which is the main inflationary pressure. All it will do is stunt the already faltering recovery.
Do you not think raising rates won't strengthen the £, thereby reducing cost of fuel? Can you give breakdown to suggest fuel is the main inflationary pressure? Reason I ask is because Core CPI, which excludes food and energy, is at a record 3.7%Edited by NoelWatson on Tuesday 17th May 11:21
NoelWatson said:
Do you not think raising rates won't strengthen the £, thereby reducing cost of fuel? Can you give breakdown to suggest fuel is the main inflationary pressure? Reason I ask is because Core CPI, which excludes food and energy, is at a record 3.7%
I don't believe it will cause a strengthening of the £ until we rule out further QoS, the benefits for an extra .5% are soon wiped away when the government decides to print another £200 billion.Edited by NoelWatson on Tuesday 17th May 11:21
You are quite right Core CPI doesn't include fuel, but it does include the cost of manufacturing\delivering\powering and heating of the industrys that produce our goods and services. Therefore it very much does include the cost of fuel, just not it's headline rate.
There are plenty of people who manage their finances responsibly and do not owe a mountain of debt who currently get fk all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means.
I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
k all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means. I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
Jackleman said:
There are plenty of people who manage their finances responsibly and do not owe a mountain of debt who currently get fk all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means.
I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
Hold on - it wasn't a case of getting greedy and buying beyond our means. Prices were what they were, rent was the same or more than a mortgage, so what exactly were people supposed to do? Get in the 100 mile long queue for a council flat? k all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means. I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
frontbum said:
Jackleman said:
There are plenty of people who manage their finances responsibly and do not owe a mountain of debt who currently get fk all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means.
I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
Hold on - it wasn't a case of getting greedy and buying beyond our means. Prices were what they were, rent was the same or more than a mortgage, so what exactly were people supposed to do? Get in the 100 mile long queue for a council flat? k all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means. I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
NoelWatson said:
frontbum said:
Jackleman said:
There are plenty of people who manage their finances responsibly and do not owe a mountain of debt who currently get fk all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means.
I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
Hold on - it wasn't a case of getting greedy and buying beyond our means. Prices were what they were, rent was the same or more than a mortgage, so what exactly were people supposed to do? Get in the 100 mile long queue for a council flat? k all for their savings and are also facing the high cost of living. Why should they be propping up those who got greedy buying property way beyond their means. I think interest rates will have to go up soon, the cost of property is to bloody high anyway. It is time for proper readjustment, the housing bubble hasn't burst, it just has a slow leak. The sooner we stop prolonging the agony the longer uncertainty will continue.
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