warrenm2

That cant be right , can it?

Seems that GB introduced the CPI and it doesnt reflect reality - pensioners, Lewis, are particularly hard hit - stick that in your pipe and smoke it

alcazar

iTrader: (2)

A politician deliberately misleading people?

Surely not?

Alcazar

PeteBrant

Inflation has never used house prices, that was always called the "underlying rate" and was seperate from any considerations to changing interest rates/pay rises etc - It used to be based on the RPI (retail price index) which kept creeping up, way over the target 2%, so GB changed it to be based on the CPI (consumer price index), which is also now creeping above 2% - Expect a new way of calculating inflation soon.

Leslie

Of course the inflation rate has to be made to look as though it fits the Government's predictions. How else can you run a country? No wonder the politicians want a £40k pay rise to go with their obscene tax free allowances.

Les

MattW

Surely anyone with an ounce of common sense has known this for a long time.

stilover

And the Government are calling for business's not to give pay rises above their published inflation rates.

I'm worse off now than I was 3 years ago. I don't know anybody who is better off now. ie, cash in pocket after bills.

The Government don't want people earning more, yet are wanting to bring in road pricing that is going to hit everybody in the pocket hard. They even say road pricing it will save business's £28 Billion a year. Not quite sure how they get to that conclusion, as every employee will demand a pay rise to pay for their traveling to work and back.

Another Labour vote winning idea.

Leslie

I thought they were boasting that it would raise £28 billion in extra tax. They seemd more concerned with that since it was the first thing mentioned in their announcement. Bit like the first job in Iraq when they stopped the attacking was to fix the oil wells! Sod the people!

Orwell was a far seeing man alright.

Les

Petem95

Yep, you'd have to be pretty stupid to believe its 2.5% or whatever the fiddled figure that the government use so that they can keep interest rates low.

I wonder what the effect of not facing upto inflation is for the economy though? I seem to remember reading it will catch up with them eventually in the form of significant inflation which they'll have to deal with, so I suppose a sharp hike in interest rates?

How much longer can Labour keep up the illusion of a healthy and booming economy for?!.. surely the pack of cards is close to collapsing.

TelBoy

Some paranoia here

Ok, the Bank of England might not be completely independent but they DO have more autonomy than some people here are giving them credit for.

The US economy is not looking as strong right now as many people predicted, and with the recent reduction of the threat of oil-price related inflation in the UK, the outlook at present is actually for a rate cut next, although few people think it will change from its current 5% for some time now. It's the Bank of England who measure inflation and make policy decisions based upon that information.

Petem95

Odd's are firmly on a rate rise next for both US economy (to counter inflation) and also a rate rise here.

Look at any betting site and check out the odds.

TelBoy

Sell it, and sell it hard. As one commentator said about two weeks ago, when the US economy turns bearish, the last person to notice will be Bernanke.

No rate hikes anytime soon in the US or UK, i'll give you better odds than any betting site if you're keen to get involved.