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Inflation to drop to zero

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    Inflation to drop to zero

    http://news.bbc.co.uk/1/hi/business/7408833.stm

    The Item Club also says that the government's choices include sticking to the current inflation target of 2% - which could mean no more interest rate cuts for some time, and therefore lower economic growth.

    It adds that another option is to mitigate the impact of high food prices by reducing other taxes, including Value Added Tax, but given the government's poor finances this option is not a serious one.

    Or the UK government could change its inflation target above 2%.

    "There is a good case for switching the [inflation] target to core CPI inflation, which excludes the effect of food and energy prices," says the report.


    So take out the cost of food and energy now and just include PlayStations and XBOX'es?


    #2
    This is wonderful news! Inflation drops and so BofE rates can come down and then boomed once again! Gordon really will save the economy! Hopw does he make it look so simple?!





    It's about time I changed this sig...

    Comment


      #3
      I can understand how some things outside government control, like oil prices, may not be subject to UK interest rates so maybe two indexes make sense, one a measure of UK internal inflation for the BOE to act on and one to tell us poor saps what is really happening.

      I wonder what part tax plays in inflation, given that it is a high percentage (about 70% ?) of fuel prices and that fuel is a major cost of haulage firms (up to 40% ?) and that in turn haulage is a major factor (can't be bothered to look it up but lots%) in food prices.
      bloggoth

      If everything isn't black and white, I say, 'Why the hell not?'
      John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

      Comment


        #4
        Originally posted by xoggoth View Post
        I can understand how some things outside government control, like oil prices, may not be subject to UK interest rates so maybe two indexes make sense, one a measure of UK internal inflation for the BOE to act on and one to tell us poor saps what is really happening.
        The ONS produces loads of different indices apart from the CPI and RPI most of which are published. The Treasury and the BoE study the majority of them and know exactly what is going on. I have always found the term ‘non-core’ ironic as it applies to those items that are at the core of most people’s expenditure such as food and fuel. Since much of these are sourced from abroad, the value of Sterling is important here. Yes, it is doing well against the USD, but only because it has slid down the pan slower than the green stuff.

        The behaviour of senior people not just the BoE, but more importantly, the Treasury (i.e. successive Chancellors) goes beyond negligent and well into treason. The damage done now will take something in the region of 50 years to put right.
        How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.

        Follow me on Twitter - LinkedIn Profile - The HAB blog - New Blog: Mad Cameron
        Xeno points: +5 - Asperger rating: 36 - Paranoid Schizophrenic rating: 44%

        "We hang the petty thieves and appoint the great ones to high office" - Aesop

        Comment


          #5
          Originally posted by MrRobin View Post
          This is wonderful news! Inflation drops and so BofE rates can come down and then boomed once again! Gordon really will save the economy! Hopw does he make it look so simple?!





          WHS

          Interesting how whatever measure you try to target it misbehaves? M0, M1, M2, M3, M4, RPI, CPI, Core.

          Surely there is a better way?

          Comment


            #6
            Originally posted by HairyArsedBloke View Post
            The damage done now will take something in the region of 50 years to put right.
            What makes you think it will be put right? This country is now firmly a second rate country, with only the occasional pockets of excellence keeping it afloat.
            However it is our own fault - we have created a culture where mediocrity is celebrated.
            Hard Brexit now!
            #prayfornodeal

            Comment


              #7
              Originally posted by sasguru View Post
              What makes you think it will be put right? This country is now firmly a second rate country, with only the occasional pockets of excellence keeping it afloat.
              However it is our own fault - we have created a culture where mediocrity is celebrated.
              Big brother and the sun not enough for you?

              Seriously - I blame fatherlessness.

              Comment


                #8
                Originally posted by sasguru View Post
                What makes you think it will be put right? This country is now firmly a second rate country, with only the occasional pockets of excellence keeping it afloat.
                However it is our own fault - we have created a culture where mediocrity is celebrated.
                Blimey - I have to agree with SAS
                Older and ...well, just older!!

                Comment


                  #9
                  Originally posted by BrilloPad View Post
                  Seriously - I blame fatherlessness.
                  Yeah, them Jesus types are behind it all.
                  How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.

                  Follow me on Twitter - LinkedIn Profile - The HAB blog - New Blog: Mad Cameron
                  Xeno points: +5 - Asperger rating: 36 - Paranoid Schizophrenic rating: 44%

                  "We hang the petty thieves and appoint the great ones to high office" - Aesop

                  Comment


                    #10
                    Originally posted by ratewhore View Post
                    Blimey - I have to agree with SAS
                    Me too
                    ǝןqqıʍ

                    Comment

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