October 18th, 2011

+ + + CPI up to 5.2% + + +

A warning


107 Comments

  1. 1
    Ed the Axeman says:

    More bundles of notes on the fire please Mr Central Banker.

    Like

    • 5
      foreign agent Dave says:

      RPI 5.6%, highest in over 20 years.

      Yes!!!

      Like

      • 7
        The story for the last three years... says:

        We must keep interest rates at 0.5% to tackle the risk of deflation.

        Like

        • 13
          Oy vey, the cattle still don't get it. says:

          The story since 1693(Bank of England), 1913 (US Fed + fed. income tax), 2003 (Iraq), 2011 (Libya)…
          .
          ‘give me control of a nation’s money and I care not who ‘runs’ it…’.

          Like

          • Dave's cabal of blackmailed fairies, working for 'foreign' powers says:

            We’re all in this together, English cretins! There’s plenty of room in Liam’s arse!

            Like

          • Anonymous says:

            Unless salaries goes up as well it will not work.

            Like

          • jgm2 says:

            Salaries will go up. Driven by the public sector unions.

            Like

          • Nemo says:

            Gideon wants to keep the plebs wages down so there is more for his friends

            Like

          • Aunt Mat says:

            Never seen a politician shopping in Primark.

            The cuts have not bitten them hard enough.

            It is only when we see our elected representatives wearing suits which cost less than £2000 that I will believe that we are in this together.

            Like

        • 15
          Anonymous says:

          Its mainly to do with high energy cost, increase in VAT and imports. People are buying less in terms of quantity and moving to cheaper goods.

          There is no internal pressure on inflation.

          Like

          • Aunt Mat says:

            There is still a little time to get your savings into a safe place.

            Under your bed sounds favourite at the moment.

            Like

          • sockpuppet #4 says:

            ARe you the same Anonymous as yesterday?
            Energy costs and imports are expensive because of QE. It’s taken ages to feed through fully, but here it is.

            Like

          • Nuke Brussels & Strasbourg says:

            Doesn’t it make you feel good knowing that your taxes are paying off Labour’s Debt, Euro Parasites, Public Sector Parasites, Foreign scum with Swiss Accounts, Benefit spongers, Asylum seekers, Criminals and Gold-plated MP pensions?

            Like

          • Clifton Fields says:

            You are Mervyn King and I claim my free wheelbarrow full of soon-to-be- useless fivers.

            Like

          • Anonymous says:

            Salaries aren’t rising to there is no internal inflation. Economy need to be rebalance until then you will have imported inflation.

            Like

          • Piss off Lefty says:

            Piss off. Septembers inflation figures have fuck all to do with January’s VAT hike. The reason things cost more is because the pound is worth less and it is worth less because the BOE with Georgee’s permission keeps printing more pounds.

            Like

          • Anonymous says:

            UK was living off other countries, chickens are coming to roast. We need pound to fall by another 25% to rebalance the economy. Until UK start to live within its means there will be imported inflation.

            Like

          • Clifton Fields says:

            You can’t even write proper English. Why should we take any notice of what you say? Back to school thicko!

            Like

          • jgm2 says:

            There is no internal pressure on inflation.

            Well, apart from the ‘internal pressure’ created by printing 275bn quid obviously. That does rather tend to make all our imports more expensive. And thus all our distribution costs.

            Still, it’s quite obvious what is happening even though the fuckers have been denying it for the past three years.

            Plan accordingly.

            Like

        • 29
          genghiz the kahn says:

          Tackle the risk of deflation making the value UK government debts higher.

          King gets a knighthood for inflating it away?

          The inflation target is almost as unbelievable as Brown’s targets for GDP.

          Like

      • 53
        Gordon, Tony and Eds says:

        Nothing to do with us

        Like

    • 14
      Up sh1t creek says:

      Print those Pounds, print, print print. trash the Pound until it’s worthless.

      Meanwhile, while you still have some value, buy assets that the government or taxman can’t take like gold or silver or other attests. Protect yourselves from the criminals in the Bank of England and criminals in the Treasury.

      Like

      • 33
        Ed the Axeman says:

        If you take inflation targets from the day they are introduced and look at how prices should have increased, you can see just how badly the BoE has performed. Prices are over 7% higher than they should be.

        The targeting of the yoy rate is just King saying,

        “please please, let me have another go, I’ll do better next time”

        “Ah yes, I’ve got it wrong”

        “please please, let me have another go, I’ll do better next time”

        “Ah yes, I’ve got it wrong”

        “please please, let me have another go, I’ll do better next time”

        “Ah yes, I’ve got it wrong”

        Like

      • 34
        Anonymous says:

        I’ve just used my savings to pay off the mortgage.

        Like

    • 17
      Chris Huhne says:

      Got to pay for the Widmills somehow.

      Like

    • 67
      Up sh1t creek says:

      This is the greatest asset stripping of prudent savers and pension funds ever seen in the history of the UK, to fund feckless borrowers, which includes the government – who are NOT serious about public sector cuts.

      The EU’s Barroso wants bankers arrested over frauds. When will we have arrests of the politicians in the LibLabCon that have created this fraud and theft – redistribution of wealth from the prudent to the feckless?

      Like

    • 104
      Handycock, No1 Trougher in Parliament says:

      Won’t affect me and my Missus, we are both on index linked salaries, allowances and pensions as an MP and both of us Councillors. Boaz.

      Like

  2. 2
    Billy Bowden is the greatest umpire ever ! says:

    Something to do with printing money?

    Like

  3. 3
    nell says:

    Anyone who does the regular weekly shop knows that that figure is way below the increases we are facing buying food.

    Like

  4. 4
    Cell time says:

    Good to see from yesterdays DP that Luciana Berger is pure window-dressing, if you like that sort of thing. Complete airhead

    Like

  5. 6
    Cunning Plan says:

    Come on Dave; roll your sleeves up, smile for the camera and let’s make a film; “Carry on blaming Labour”

    Like

    • 8
      jgm2 says:

      Blaming Labour does have the benefit of being true though.

      Like

    • 23
      Anonymous says:

      LABOUR SPENT ALL THE MONEY .. AGAIN!

      AND THEY WANT TO CARRY ON SPENDING STILL!

      NO MORE BOOM AND BUST, REMEMBER, OVER THE MEDIUM TO LONG TERM ETC ETC ETC.

      CALLAGHAN,WILSON,BLAIR,BROWN BANKRUPTED THE NATION. THEY ALL ONLY EVER HAD ONE POLICY,

      SPEND SPEND SPEND

      THEY EVEN BORROWED THAT FROM VIV NICHOLSON!

      STILL AT LEAST THEY CREATED MANY CHAMPAGNE SOCIALISTS, ESPECIALLY IF YOU SUPPORTED THEM, DIDN’T THEY POLLY,NEIL,GLENYS ETC ETC?

      Like

    • 32
      Snotsicle says:

      Your lot have spent the last twenty years playing “blame Thatcher”, so stop being hypocritical.

      Like

  6. 11
    Billy Bowden is the greatest umpire ever ! says:

    Can anyone tell me when the last time inflation figures were true and reflective or the real world?

    Like

    • 48
      Sir William Waad says:

      There is no ‘true’ figure for inflation. The national inflation figure has no practical reality. Everybody has there own personal rate of inflation, depending on how they spend their money. Different measures of inflation are different proxies for the fall in value of our currency, which in itself is an imprecise concept. In this respect ‘inlfation’ is very similar to the changes in ‘temperature of the atmosphere’ so beloved of climate scientists.

      Like

      • 58
        Billy Bowden is the greatest umpire ever ! says:

        Thanks Sir W

        Like

      • 59
        The Paragnostic says:

        There’s one important difference though, WW – changes in inflation are always anthropogenic, while the influence of human activity on climate is, well, moot.

        And stop calling geography teachers scientists!

        Like

  7. 12
    Spartacus says:

    I went through Norwich airport recently.
    You now have to pay five pounds to get into the departures area in order to leave the dump behind.
    It reminded me of Nigeria and all the other third world countries I have worked in.

    Like

  8. 20
    Selohesra says:

    OT but I think I have discovered the solution to the middle east problems – clearly the P@lestinians have inferiority complex as they think the freedom of one of their own equates to one tenth of one % of an innocent young conscript. I am an anatomist but I reckon that equartes to approximately one foreskin (which ironically young Shilat didnt have – so perhaps they released one too many)

    Any solution would be to give then som,e counselling to boost their self esteem

    Like

  9. 21
    Just Wondering says:

    Isn’t the September figure the one they base benefit increases on?

    Like

  10. 25
    Luciana's greasy pole says:

    Like

    • 36
      The Black Watch says:

      So why should gold plated taps attract 5% VAT and a pair of shoes 20% VAT Chuka?

      Like

    • 44
      genghiz the kahn says:

      Which ones would those be – figments of his imagination.

      We all know that ZaNuLabour doesn’t understand SMEs, look at the Labour Front Bench, how many of them have ever worked for a business, and how many of them have been SPADs, ‘Researchers’ or simply careerists in search of a seat.

      Deadwood thinks that he can differentiate between ‘good’ and ‘bad’ businesses, silly sod probably thinks that an ethical firm is based in Chelmsford.

      Like

    • 45
      Labour minister Liam Byrne says:

      “Dear Chief Secretary,
      I’m afraid to tell you there’s no money left.”

      Like

    • 49
      Steve Miliband says:

      I would support zero VAT, 10% corp tax, 10 % IT, no NI.
      But we live in a nasty world where that Mr Brown spent all the money, so Mr Umunna it is but just a political stunt

      Like

      • 60
        genghiz the kahn says:

        Chuka’s tweet is not shows he isn’t even a cunning political stunt, just a stunning political Hunt.

        Like

    • 57
      Engineer says:

      ANY tax cut is going to attract support among businesses. At any time.

      Like

  11. 31
    Steve Miliband says:

    Did anyone see The Bank That Ran Out Of Money last night? How the fuck did that happen? Sir Fred really was an egotistical maniac, no wonder Gordon loved him so much.

    Apparently he said due diligence was not really necessary when buying ABN as Barclays had already sort of done it. What could possibly go wrong?

    The sad fact is that RBS was actually a sound Bank with a good balance sheet until Fred bought £325bn toxic assets

    Like

  12. 37
    Josiah Bartlett says:

    7 Billion people in the world, the price of food is going to keep going up whatever central bankers or governments do.

    We (developed countries) collectively lived an economically unsustainable lifestyle for a decade, whatever is done to try to promote growth etc we are all going to have a standard of living for some time to come.

    Putting interest rates up might help get inflation down, and would be fairer to savers, pensioners etc but would put financial pressure on millions of people with variable rate mortgages, and would feed through to increase private rental rates, which we are told people can’t afford as it is.

    Not easy!

    Like

    • 53
      Sir William Waad says:

      “….we are all going to have a standard of living for some time to come.”

      Let’s hope so. Fortunately, I can shoot my own food.

      Like

    • 65
      Engineer says:

      I’ve said it before, I’ll say it again – Osborne is in a very difficult position. There’s practically nothing he can do that won’t have adverse effects on either the deficit, or some innocent section of society.

      Thanks a f***ing bundle, Brown and Balls. You’ve screwed the UK’s economy for a generation or more.

      Like

      • 76
        Cunning Plan says:

        There is loads that Gideon can do….he can: reduce VAT on fuel to 10%… close the corporate tax ‘loopholes’….tell the likes of Lewis Hamilton and Phillip Green to either pay there fair share of tax or fuck off, limit migrant access to the NHS to urgent cases only, start building social housing to cut the Housing benefit bill……lot and lots of choices to both stimulate the economy and pull in more revenue!

        Like

        • 85
          jgm2 says:

          Yep. He can start by firing the one million bedwetters, boxtickers and bastards hired by the Maximum Imbecile practically overnight in 2001/2002.

          Then he can crank interest rates up to 5% to kick the legs from under the pyramid housing scam and make them more affordable for everybody. With the added bonus that the pound will appreciate and so imported inflation will go down.

          Like

        • 92
          Engineer says:

          Cunning Plan – all those involve spending money he doesn’t have. As to refusing to treat migrants – many of them should not have been admitted to the country in the first place, but now they’re here, you can’t just traet them worse than animals.

          Forget stimulating the economy – consumers are not willing to spend on anything but essentials, companies are paying down debt as fast as they can go, and government is already grossly overspending. In the rest of the world, America is near recession, the Eurozone is in serious crisis, the BRIC countries don’t buy much off us anyway. Where is this growth going to come from?

          Like

    • 74
      The Paragnostic says:

      A rate rise wouldn’t necessarily feed through to rents – there’s only so much the m*rket will bear, and what is more likely is that repossessions of buy-to-let properties would start to happen, with a resulting fall in property values making purchase more attractive.

      Left to itself, there’s enough negative feedback in the system for things to stabilise – just not at current rates and prïces. The artificially low rates of the middle and late years of the New Labour fiasco only led to unsustainable property prïce rises, and until that perturbation is worked out of the system, people will still be operating on false premises when deciding where to invest their income.

      Like

  13. 41
    Ramrod says:

    How long until Mervyn King gets a brick through his window or worse for destroying people’s savings?

    Like

    • 50
      Only asking says:

      How come Mervyn King has managed to survive for so long?

      Like

      • 66
        Cunning Plan says:

        What does he know?

        Like

        • 78
          Spank Sinatra says:

          I think it is perhaps more a case of what he doesn’t know – rather a lot I fear! There are only three engines for growth:- consumers, states and private companies. Consumers are sitting on their hands unable/unwilling to spend. Governments are stratospherically broke whilst companies are stockpiling cash instead of investing and who could blame them. Why should they invest when they see demand contracting. Hence the QE wheeze. We are sadly all on the road to hell on the proverbial handcart. We are now no longer looking at a painful couple of years but quite possibly a decade of financial misery with extremely grave consequences.

          Like

  14. 77
    Kitsunegari says:

    All of these worthless fucks are biding their time until next year. King hopes that once VAT is taken out the equation then inflation will drop back sharply. It won’t. Home energy, petrol, and food are driving inflation up. Most of the working public need all three. What will his excuse be then? Osborne is hoping that the Olympics drives the economy forward. It will. Slightly. But this is a temporary solution. The government need to stop borrowing. They’ve been in 18 months and while I expected borrowing to increase slightly for the first few months, I expected it to begin to fall back. It has not. They can rightly blame Labour until the cows come home but they need to get serious about cutting borrowing and spending. As each month goes by they become as guilty as Labour.

    Like

  15. 83
    Osama the Nazarene says:

    Will we see the misery index going down again?

    Like

  16. 84
    wotson says:

    Pensioners to take a hit of .4% next year and then the next…..

    Like

  17. 89
    There are many more of us than there are of them says:

    Want to know how the Government/bank of England are responding to the crisis?

    They’re sensible sorts so they’ve obviously targeted a gradual decrease in housing costs (the main drain on the UK economy) with a total ban on loose credit and fraudulent lending to prevent accumulation of even more debt. Right? I mean, no-one would be crazy enough to try and start the whole thing again would they? Would they??!!!!

    Well – you’ve seen zombie banks. Now meet the Frankenstein bank. Created from the corpse of RBS, funded entirely by taxpayer’s QE money, and run by RBS’s ex-CEO (up until 2006).

    ShawBrook bank (SureBuck for the CEO and his chums) was set up to lend to SME’s using asset security for all their loans. Sounds good eh? Just what we need eh? Well, the security specificed is property. Starting to sound dodgy? Even more so when you read that they will lend via broker networks (the main cause of liar loans during the ‘boom’).

    I have it on good authority from a subprime mortgage company in my building that SureBuck will lend pretty much only to Buy-to-Let SMEs’ and have no interest in proof of income. The asset security is the property they’re lending on. Surely suicidal in the long run given the massive overvaluation of the UK property market. Particularly as I know for a fact that the subprimer broker’s clients are actually broke and have no deposits to speak of.

    Expect worker’s earnings to deflate whilst the earnings of those whose wealth is linked to property (Merv, Gordon Brown, Tony Bliar etc.) to inflate hugely off the back of all of our taxes. A crazy scheme designed to ensure good retirement pots for the boomers before the wheels come off in 2017 when UK debt needs to be refinanced. Time for emigration everyone.

    Like

  18. 90
    Raging Bull says:

    Want to know how the Government/bank of England are responding to the crisis?

    They’re sensible sorts so they’ve obviously targeted a gradual decrease in housing costs (the main drain on the UK economy) with a total ban on loose credit and fraudulent lending to prevent accumulation of even more debt. Right? I mean, no-one would be crazy enough to try and start the whole thing again would they? Would they??!!!!

    Well – you’ve seen zombie banks. Now meet the Frankenstein bank. Created from the corpse of RBS, funded entirely by taxpayer’s QE money, and run by RBS’s ex-CEO (up until 2006).

    ShawBrook bank (SureBuck for the CEO and his chums) was set up to lend to SME’s using asset security for all their loans. Sounds good eh? Just what we need eh? Well, the security specificed is property. Starting to sound dodgy? Even more so when you read that they will lend via broker networks (the main cause of liar loans during the ‘boom’).

    I have it on good authority from a subprime mortgage company in my building that SureBuck will lend pretty much only to Buy-to-Let SMEs’ and have no interest in proof of income. The asset security is the property they’re lending on. Surely suicidal in the long run given the massive overvaluation of the UK property market. Particularly as I know for a fact that the subprimer broker’s clients are actually broke and have no deposits to speak of.

    Expect worker’s earnings to deflate whilst the earnings of those whose wealth is linked to property (Merv, Gordon Brown, Tony Bliar etc.) to inflate hugely off the back of all of our taxes. A crazy scheme designed to ensure good retirement pots for the boomers before the wheels come off in 2017 when UK debt needs to be refinanced. Time for emigration everyone.

    Like

  19. 93
    smell the oats says:

    merv kings letters to the chancellor is verging on groundhog day

    Like

  20. 95
    Tachybaptus says:

    There was a word for the similar situation under Harold Wilson’s government: ‘stagflation’. Time to take it out for a run again, perhaps.

    Like

  21. 97
    Anonymous says:

    Fair enough Guido, but for those of us as thick as a whale omlette, what do we do about it ?

    Buy Gold ? Emigrate ? Move back to UK as it’s better than sitting in the Euro Zone ?

    What exactly does a cash-strapped middle aged economic dunce do ?

    Like

  22. 99
    Grimly Feendish says:

    Can I just say to the BoE, Mervyn King, “Beaker” Alexander, Gideon, CaMORON, and the taxpayer bailed out banks “YOU DON’T KNOW WHAT YOU’RE DOING”.

    Like

  23. 100
    MajorFrustration says:

    But according to Merve of the BoE this is just a blip which will sort itself out. Yeah Right – after I think at least fifity months of above target inflation you would have thought that somebody would be doing something about it. Mind you the people that could and should do smething are all on index linked salaries and pension. Merve should take a reduction in salary to bring home the reality of the outside world. Fat chance though

    Like

  24. 107
    robbie says:

    Stop trying to be a Chancellor, Merv and get interest rates up to 5% now. Your job is to control inflation. There is no deflation risk at 5-6% inflation you auld bumbling git- get on with it. Stop protecting those inflated asset prices and do that job your inflation proofed pension is being funded by.

    Like


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Darling

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