Inflation up again.

[DaveB]

Inflation rises to 2.5% in August

And set to go higher by the looks. Interest rates will go up again this month. I'm telling you, 6% by the spring.

Doomed, Oh Dear, etc etc.

[CaribbeanPirate]

Inflation rises to 2.5% in August Interest rates will go up again this month. I'm telling you, 6% by the spring.

BoE already met for September, rates on hold. Chance of a rate rise in November a posibility.

[AtW]

It takes 3-4 months for rate change to be reflected in inflation figures, so BoE waits to see what's going to happen - they already predicted that inflation will be higher than 2.5% for brief period of time, hence increase in rates.

They really need to do another one this year.

[Mailman]

You and I and everyone else except the Government already know that inflation is much higher than that bullsh1t 2.5% rate.

If only my power and everything else only went up every year by 2.5%

Mailman

[Asterix]

Don't get me started

It's that old chestnut again. We've said that most of the inflation is now the result of gov't incompetence and waste of the public sector, like council tax increases, tuition fees, overtaxed petrol, etc. Get rid of this Gov't and inflation will come down. And I'm against the NL B(w)ankers setting interest rates as already discussed.

[Troll]

Can you ever have high inflation with low interest rates? (except to aid recovery from a crash)

[CaribbeanPirate]

Report on figures:
http://www.statistics.gov.uk/pdfdir/cpibrief0906.pdf

Check out page 5. Energy at 29.6% pa up from 29.2%pa the month before

[BlasterBates]

...hmm

So inflation goes up, interest rates then go up which causes inflation go up so meaning we need to raise interest rates again.


KABOOM

[DimPrawn]

I liked this bit

The Office for National Statistics said an increase in the price of computer games and toys in August had outweighed a decline in petrol prices and air fares.

FFS, so inflation is not being driven by increased utility bills or petrol or mortgage payments, but increases in the cost of computer games and toys?

I think it's all a load of bulltulip. All of it.

[AtW]

I think it's all a load of bulltulip. All of it.

Indeed it is - IMO inflation calculation should include bare minimum stuff that people simple have to pay for in order to live, ie: food, fuel (car/gas/electricity), council tax, morgage/rent payments (pro rata by split between owners/renters) etc.

Including IPOds and things like this is a joke.