UK inflation hits 17-month high

[whitecity]

UK inflation hits 17-month high

UK inflation accelerated again in April to hit its highest rate in 17 months, official figures show.

On the Consumer Prices Index (CPI) measure, inflation hit 3.7% - well above the target of 2% and the highest rate since November 2008.

On the Retail Prices Index (RPI) measure, which includes housing costs, inflation was up to 5.3% - its highest rate in 19 years.

Cont/...

What did anyone expect after printing £200 billion?

Now's the time to borrow. Low interest rates and inflation to erode the principle. If you're inclined towards a punt in that direction.

 

[Alsacien]

UK inflation hits 17-month high

UK inflation accelerated again in April to hit its highest rate in 17 months, official figures show.

On the Consumer Prices Index (CPI) measure, inflation hit 3.7% - well above the target of 2% and the highest rate since November 2008.

On the Retail Prices Index (RPI) measure, which includes housing costs, inflation was up to 5.3% - its highest rate in 19 years.

Cont/...

What did anyone expect after printing £200 billion?

Now's the time to borrow. Low interest rates and inflation to erode the principle. If you're inclined towards a punt in that direction.

To let it go up that much so quickly is a poor performance from the BofE, an open letter of apology has been published (nobody is sure why). But I'm not sure it is structural and therefore should settle without too much of a base rate increase.

 

[LEOLION]

UK inflation hits 17-month high

UK inflation accelerated again in April to hit its highest rate in 17 months, official figures show.

On the Consumer Prices Index (CPI) measure, inflation hit 3.7% - well above the target of 2% and the highest rate since November 2008.

On the Retail Prices Index (RPI) measure, which includes housing costs, inflation was up to 5.3% - its highest rate in 19 years.

Cont/...

What did anyone expect after printing £200 billion?

Now's the time to borrow. Low interest rates and inflation to erode the principle. If you're inclined towards a punt in that direction.

I dont think it has anything to do with printing money as you say more like oil going up and as it says the other things like womens clothing etc and imports as well

 

[bobthedog]

So LEOLION you dont agree that printing currency to ease the recession has no impact on inflation? You aren't very good at history are you!

 

[Alsacien]

So LEOLION you dont agree that printing currency to ease the recession has no impact on inflation? You aren't very good at history are you!

Worryingly, he seems to know a lot about womens clothing though...........

 

[Bazzinho1977]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

 

[Steven]

The more the merrier but could they wait until September please.

The higher the rate then the more gets added to miltary pensions.

 

[Alsacien]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

 

[Drlligaf]

So LEOLION you dont agree that printing currency to ease the recession has no impact on inflation? You aren't very good at history are you!

Worryingly, he seems to know a lot about womens clothing though...........

Why should that be worrying? One now knows who to turn to for advice.

Back to more serious things, just how independant is the BoE from political interference?

 

[OldSnowy]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

Presumably most European Central Banks haven't been printing money hand over fist in order to 'fiscally ease' things for thier political masters?

 

[Alsacien]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

Presumably most European Central Banks haven't been printing money hand over fist in order to 'fiscally ease' things for thier political masters?

There is only one ECB in policy terms, and yes they have - but in a different and more focussed way - nothing like to the extent the BofE has added liquidity generically.
Cannot even blame Gordon Brown for this (well maybe a bit..)

 

[WobbleHead]

Now's the time to borrow. Low interest rates and inflation to erode the principle. If you're inclined towards a punt in that direction.

Indeed it would be a punt. The most obvious tool the government has to control inflation is interest rates, or raising them. Thus, one may borrow now and find it difficult to repay down the line. That is, unless a fixed rate deal can be made.

 

[Alsacien]

So LEOLION you dont agree that printing currency to ease the recession has no impact on inflation? You aren't very good at history are you!

Worryingly, he seems to know a lot about womens clothing though...........

Why should that be worrying? One now knows who to turn to for advice.

Back to more serious things, just how independant is the BoE from political interference?

Completely - however is does have to deal with the fallout of political decisions so is not impartial and can advise.

 

[parapauk]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

They'll look even bigger twunts if they try to start a war on inflation in the middle of a fragile recovery.

 

[Alsacien]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

They'll look even bigger twunts if they try to start a war on inflation in the middle of a fragile recovery.

Without inflation control and confidence in the central bank you have no recovery....open letters saying sorry are not going to cut it.

 

[Bazzinho1977]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

No it isn't. The target is to maintain inflation within+/- 1% of 2%.

The BofE have independence and a good chance of getting it right. Well, until our new political masters decide tht it should come back in house to the treasury. And then ramp it up for ever more bizarre policy reasons.

Can't wait.

 

[parapauk]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

They'll look even bigger twunts if they try to start a war on inflation in the middle of a fragile recovery.

Without inflation control and confidence in the central bank you have no recovery....open letters saying sorry are not going to cut it.

Agreed, but we're a world away from inflation being out of control. The last thing we need now is panic, though at the end of the day I think King will hold his nerve. To be honest, I'd agree with Bazz's prediction.

 

[Alsacien]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

No it isn't. The target is to maintain inflation within+/- 1% of 2%.

The BofE have independence and a good chance of getting it right. Well, until our new political masters decide tht it should come back in house to the treasury. And then ramp it up for ever more bizarre policy reasons.

Can't wait.

Target 2% (same as the ECB).
http://www.bankofengland.co.uk/monetarypolicy/pdf/cpiletter100517.pdf

 

[Alsacien]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

They'll look even bigger twunts if they try to start a war on inflation in the middle of a fragile recovery.

Without inflation control and confidence in the central bank you have no recovery....open letters saying sorry are not going to cut it.

Agreed, but we're a world away from inflation being out of control. The last thing we need now is panic, though at the end of the day I think King will hold his nerve. To be honest, I'd agree with Bazz's prediction.

As inflation was only 1.1% in September 2009 this rise cannot just be blamed on oil prices - things like VAT were known factors that should have been planned in - poor show to have gone over 3% IMO.

 

[Bazzinho1977]

Bloody tories. Only been in a matter of days and inflation has gone through the roof already!

Nah, only joking. This is actually not a huge issue - and has been impacted by a number of things that hit specifically in April. It will fall again throughout the year. I would suggest that it will come down to around 2.7 by October / November.

You can keep that and beat me up with it if I am wrong.

You had better hope it is nearer to 2% and sooner rather than later - that is after all the BofE target.
If the ECB can do it with all the machinations in the 16 member Eurozone, the BofE look twunts if they cannot even control one economy....

No it isn't. The target is to maintain inflation within+/- 1% of 2%.

The BofE have independence and a good chance of getting it right. Well, until our new political masters decide tht it should come back in house to the treasury. And then ramp it up for ever more bizarre policy reasons.

Can't wait.

Target 2% (same as the ECB).
http://www.bankofengland.co.uk/monetarypolicy/pdf/cpiletter100517.pdf

Erm sort of. The Bank of England Act sets out that the target will be set by the government for the bank to act upon. The current target is 2% although the remit is not to aim to achieve this every month constantly (because that would be unhelpful as well). The remit is to keep inflation within 1% of the target set.

So 2% both is and isn't the target. Clear? Thought not.