Inflation rate jumps to 2.9%
 

Could this be the start of the pain we must all face due to the Worldwide Crisis and the saving of Banks?

Interesting, high inflation will erode our National debt quicker and with less pain ..... but, there is a lot of money sloshing around in the system driving up prices!

I've seen the Town Centres heaving, everyone appears to be spending!

Interest Rates to start an upward climb before the Election?

The government won't allow interest rates to climb before the election. That would erode house prices which is what the middle classes base their wealth upon.

Steve

I've seen the Town Centres heaving, everyone appears to be spending!

Your home town is getting a new face lift this year £30m so they say:norty:

Expect inflation to be manipulated again by the Government near April time. Just about when most people are expecting a pay rise. And we know Gordon isn't wanting people to have a pay rise this year.

I never got one last year either.

Civil Servants are being held at 1% .... if Inflation holds high then I see some very annoyed Government workers!

2% you muppet :D

I thought they were only getting 1% this year and then 1% in 2011??

And inflation will erode people's savings sooner than you can say 'Nurse, fetch me my bedpan!'!!!

Oh well, rampant inflation, unions on the warpath, huge national debt. Wonder what period this reminds me of? Oh yes, late 70's .... Another FAILED commie government, only this time we'll be paying for it for decades.

Dave

What has happened to you Pete?

You are agreeing with what I forecast a while ago!

Mind you, if your hero had not chucked our money away whan he was Chancellor, we would be much better placed.

Les

Would be a catastrophe any time soon :cuckoo:

TX.

Commie????? OMG this place gets dafter!!!

We'll be paying for it for decades as we have not had a long termist government in power for over 30 years and won't be getting one any time soon. The colours of the rosettes matter little. This government and the previous one were made up of career politicians and whether you elect Cameron or Brown that is what you will be getting again.

The present situation is a direct result of Thatcher's dog eat dog society and her desire to create an economy based on the financial services sector followed by 13 years of short termist policies to make people think they were well off when in fact their 'worth' was built on nothing more than perceived value and credit.

They are not going to make this country better, not now, not ever. They just don't care about the likes of you or me!!!!

What did they expect to happen in the month leading up to Christmas and the month before VAT was to go back up? Hardly shocking news.

Oh and as mentioned in the news petrol/diesel prices haven't dropped over Winter like they normally do and have either held or gone up in price which has also affected the inflation figures.

Pete trolling as usual

What period does this cover and what were given as reasons for jump?

This must be before Christmas when prices for goods were pretty tight? No real changes in mortgage costs etc.

But I can see inflation catching a cold with VAT back to base and heating bills hitting the nation's doormats.

Difficult to see how HMG could massage the figures just before the election though.

Oh well I expect we will have Uncle Vince on Newsnight tonight giving a reasonable explanation.

dl

The same way they do it every time. They have a Vertual shopping basket. If the contents of that basket rises in value, inflation rises. Value goes down, so does inflation.

At one point they had Mortgage payments in their shopping basket. As Mortgage payments rose above what they wanted. They simply took it out of the basket, and replased it with something that has only risen slightly, thus keeping inflation as to what they wanted to show.

Remember when TV's were in there? Then LCD & Plasma TV's came out, and prices rocketed. They were taken out. Then the price of Plasma's dropped. Guess what was added to the basket to keep the value down? Plasma TV's.

Inflation can be what ever the Government want it to be. If you included Petrol, Gas, Electricity (The thing that really effect us all) inflation would be off the charts.

I can't see any difference it will make if the interest rate rises as the banks aren't passing this onto the consumer and a mortgate has a higher interest rate now than what it was 5 years ago. Once the encomy starts to recover its bound to rise anyway.

Trolling is now defined as reporting a News item is it? :wonder::cuckoo::cuckoo::freak3::freak3:

Do not panic comrades

http://www.septicisle.info/uploaded_...380-784391.jpg

[QUOTE=SunnySideUp;9166961]
Interesting, high inflation will erode our National debt quicker and with less pain ..... but, there is a lot of money sloshing around in the system driving up prices!QUOTE]


errrr - no it won't.

1. No government has ever successfully managed to use inflation to get rid of national debt.

2. A lot of the national debt is in overseas currencies - inflation buggers the exchange rate, making the debt more expensive. Inflation also drives interest up, which makes the interest bill on the national debt much higher (most of the debt is not fixed rate gilts).

This is Brown's wonderful mis-management of our economy over the last decade coming home to roost - the classic Labour strategy of borrow to spend - except the borrowing is now running out.

Fingers crossed there isn't any more bad news left in the system - the coffers aren't full enough to cope. e.g. let's see what happens to the Euro-zone when they act to stop Greece defaulting....

Pete is right on one thing - we've all got a lot of (heavy tax) pain coming.

Gordo

Quarterly figures mus be out any second now !

Just out of interest, can you explain your remark fully please. I must have misunderstood the meaning of the term "trolling" completely! In fact I was tempted to suggest that you looked in the mirror!

Les :wonder:

I'm quite sre you have been on the site long enough to understand the term, resorting to personal insults on one's appearance (which are completely unfounded by the way) is frankly pathetic and quite sad. :rolleyes:

He is asking you to explain your comment that what I posted was trolling - I take it you cannot, as it is blatantly incorrect.

He suggests the mirror as you have made yourself look very silly indeed.

This thread is obviously a quality item ...

*Enormously* different to the other offering removed to 'dross' ;)

Pete,

Seriously, do you have even the remotest understanding of economics? Does it actually interest you?

Or do you simpy see value in repeating news stories, many of which are of dubious accuracy (and hence little value) themselves?

Or do you just post these political/economic posts to get a rise out of people?

It's a serious question :)

Serious question deserves a serious answer ...

I love economics ..... investing and making money is a love of mine.

You suggest that the story I have reported here is of dubious accuracy, I suggest you take that up with the BBC as that was the source of it ..... please report back their answer as I'm sure you are genuinely interested in following up your comment.

Of course, you know that you see my name and immediately, without reason, jump on the accusations of 'trolling' and calling for a public lynching! Quite why you cannot simply ignore my posts will remain as one of the worlds great unanswered questions.

:)

LOL

Pete,

If you read my post again you may realise that I didn't call into question the dubiety of this particular story - simply that many of the stories you do cut and paste are a bit ropey to say the least.

Nor have I called for a public lynching or jumped on the accusations of trolling on this thread.

I do actually ignore many of your posts as they are often completely full of sh1te ;), but its fun to call you out from time to time :D

However, I've lost count of the number of times you've bailed on a thread when someone has called you out and you appear unable to have an answer.

Whether that is because you simply don't have the mental capacity to do so, or cannot because you've been "rumbled" is, perhaps, an even greater question :)

I'd like to think its the latter, in which case perhaps you'd be up for a little mental jousting, rather than just bailing all the time?

Many times I don't revisit threads, no point really - I have made my point, given my opinion, stated the facts .... job done. I don't feel the need to justify myself on an internet forum - that's not the same as 'bailing out' .... not sure if you have the mental capacity to understand what I've just said?

I'm glad you have moved on, and can ignore my posts :thumb:

LOL

Some, Pete, but not all :)

The jury is out on some of what you state. Using the word "facts" is stretching it sometimes :lol1:

And come on, you can do better than simply regurgitating my "mental capacity" comment, can you not? That's very school playground, don't you think?

I'd accept your assertion of having "made your point and moved on"............. were it not for the numerous occasions when you've revisited your threads at length, but yet managed to duck any response to any posts rebutting your "facts" ;)

You really must try harder if you are going to cast aspertions as to someone else's intelligence :D