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  1. #1
    sabaii sabaii
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    UK Inflation rises to 5.2 %

    UK CPI inflation rate rises to 5.2% in September

    UK Economy



    The rate of Consumer Prices Index (CPI) inflation in the UK matched its record high in September, rising to 5.2% from 4.5% the month before.
    An increase in energy costs was behind a large proportion of the rise.
    The 5.2% rate is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.
    The Retail Prices Index (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2%.
    The latest RPI measure is the highest annual rate since June 1991.
    The Office for National Statistics, which released the data, said in a statement: "By far the largest upward pressure to the change in CPI... came from increases in gas and electricity charges.
    "There were also large upward pressures from air transport and communication services."


    Senior statistician at the Office for National Statistics: "Gas and electricity costs have risen 9.9% in the past month"

    Bills for gas and electricity have risen 9.9% in the past month, and are up 18.3% on the year.
    Transport has risen 12.8% on the year, and food was 6% higher than 12 months ago.
    September's CPI measure is way ahead of the Bank of England's target rate of 2%. However, Bank governor Mervyn King still expects inflation to begin falling next year, once factors such as January's VAT rise drop out of the equation.
    Pensioners But the rise in the cost of living highlights the risk of the Bank's latest move to revive the economy through further quantitative easing, which could help to stoke inflation.
    September's CPI is key because it will be used to set the amount by which the state pension and Jobseekers' Allowance will rise next April.
    It will be the first time that benefits have increased with CPI instead of the RPI.
    Continue reading the main story Set by September inflation

    • Basic state pension
    • Jobseekers' Allowance
    • Income support
    • Most income tax allowances
    • National Insurance thresholds
    • Inheritance tax allowance
    • Capital Gains Tax allowances
    • Disability benefits
    • Maternity benefits
    • Income support
    • Incapacity benefit
    • Child tax credit
    • Working tax credit
    • Child benefit

    Other rates set by the September inflation figures include allowances and indexation for income tax, national insurance, inheritance tax, capital gains tax, disability and maternity benefits, income support and tax credits.
    With pensions and benefits rising by 5.2%, it will put further pressure on the chancellor, who is battling to reduce the budget deficit.
    But it will provide much-needed relief to claimants struggling to cope with the rising prices of food and fuel.
    Inflation peak The Bank of England had already predicted that inflation would top 5% this year as a result of higher utility bills, but it expects price rises to slow in 2012 and 2013.
    Despite the higher-than-expected rise in CPI last month, many economists agree with the Bank of England that inflation may soon start to fall.
    Continue reading the main story “Start Quote

    People keep saying it feels like the dark days of the financial crisis three years.”
    Stephanie Flanders Economics editor, BBC News

    "The September figure should represent a peak in the rate of inflation," said Chris Williamson, chief economist at financial information company Markit.
    Year-on-year increases in petrol prices and VAT will flatten out between now and January, and commodity prices have eased, he said.
    Howard Archer, chief UK economist at consultants IHS Global Insight, said: "Consumer price inflation could very well be down near to the Bank of England's target level of 2% by the end of 2012, and it could very well dip below this level in 2013.
    "Much will obviously depend on oil price developments," he added.
    Jonathan Loynes, chief European economist at Capital Economics, called the CPI figure a "nasty surprise".
    But he also agreed that inflation was "either at or close to a peak" and should soon start to fall back.

  2. #2
    Thailand Expat
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    Quote Originally Posted by sabaii sabaii
    Year-on-year increases in petrol prices and VAT will flatten out between now and January, and commodity prices have eased, he said.
    Quote Originally Posted by sabaii sabaii
    target level of 2% by the end of 2012, and it could very well dip below this level in 2013
    Quote Originally Posted by sabaii sabaii
    inflation was "either at or close to a peak" and should soon start to fall back
    All easy to say, but will they be fired if they are wrong, probably not.

  3. #3
    Fresh Seaman CaptainNemo's Avatar
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    Still after 3 years nobody's listening... we are in a depression that will not bottom out for another 5 years... the latest and largest trough in the divergent phugoid on the p2e ratio graph. No sustained growth in the UK until we start approaching 2020.

  4. #4
    Molecular Mixup
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    That bbc women is an idiot, she was on the TV news too .
    for a start the bank of Englands target level for inflation is between 1 to 2 %,
    not 2%.
    Also she just follows the government line ,ie no need to do anything about inflation ,as it will fall back in 14 months anyway, and keeps parroting high fuel prices , global factors etc
    never mentions the low interest rate and QE causes a very weak pound and this affects import prices.
    The BBC makes it sound like the pensioners and people on welfare are getting a bonus with the 5% rise ,when in fact they will be worse off , as most are poor and spend a larger percentage of thier money on things like heating and food , which have both gone up more than 5%,and they dont even get the increase till April ,
    and pensioners with savings earn negative interest in real terms .

  5. #5
    Fresh Seaman CaptainNemo's Avatar
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    I wouldn't expect anyone to really take BBCartoon network's "news" or "statistics" seriously.
    It should be self-evident that the baby boomers took everything and pulled the ladder up after them, and that the economic crisis is more about the wests's deficit with Chinese/NE Asian economy and energy dependence on OPEC and Russia; and that the housing bubble in the UK is a house of cards propped up by unsustainable low interest rates, and nothing will grow until it falls, because so much of the younger, working-age population are shut out, if they didn't come out of the right fanny.
    http://www.youtube.com/watch?v=H1F2i0rYMj8

    we are all figments of our own imagination.

  6. #6
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    Quote Originally Posted by OhOh View Post
    Quote Originally Posted by sabaii sabaii
    Year-on-year increases in petrol prices and VAT will flatten out between now and January, and commodity prices have eased, he said.
    Quote Originally Posted by sabaii sabaii
    target level of 2% by the end of 2012, and it could very well dip below this level in 2013
    Quote Originally Posted by sabaii sabaii
    inflation was "either at or close to a peak" and should soon start to fall back
    All easy to say, but will they be fired if they are wrong, probably not.
    They will be wrong. Interest rates have to be well higher then inflation to stop inflation.

    Any investment made in pounds must exceed 5.2% just to break even.

  7. #7
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    If they put interest rates up double the inflation rate no government will be able to survive. The house bubble will collapse as well.

  8. #8
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    Quote Originally Posted by OhOh View Post
    If they put interest rates up double the inflation rate no government will be able to survive. The house bubble will collapse as well.
    That's right. They are cornered. They are totally fuct and they only have themselves to blame.

    Buy gold while it is still affordable for regular people.

  9. #9
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    is it inflation or stagflation ? sounds like real GDP is receding also

  10. #10
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    Energy prices are a major contributor, and energy companies are gouging like fuck.

    The simple solution would be to renationalise the energy companies, aggregate them to improve purchasing power, stop squandering billions to foreign owners, lower the price of energy, and hey presto! problem solved.

  11. #11
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    Quote Originally Posted by harrybarracuda
    The simple solution would be to renationalise the energy companies
    Where is the UK government going to get the money from, the printing press? Possibly a windfall tax on the utility companies to pay for the nationalisation

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