« Prince Wiliam joins his first Trooping of the Colour | Main | Channel 4's eulogy to Brian Haw, Parliament Square's anti-war protestor »

June 14, 2011

Comments

Tony Makara

The problem we face is that our inflation is imported and the only current remedy for that is to raise interest rates, strengthen Sterling, and pull the cost of imports down. However we all know doing so will kill off the only growth area of our economy, manufacturing and exports. With this in mind it is now time to kick-start a debate on import-dependency and ask whether it is worth us suffering a depleted manufacturing base and costlier mortgages/borrowing here at home, in order to pay for the cheap imports that are keeping our own people out of work. If we import less and produce more for ourselves we will start putting Britons back to work and the need for higher interest rates will vanish.

Andrew Smith

Goodness me!!

The BBC has just discovered that an index such as RPI is only a means of averaging the results and each member of the survey or population has a different experience. The BBC must be recruiting from the second week of the economics courses now, rather than the first week.

Have you noticed the displacement activity of this report, which the participants regretably endorsed. They are asking us to focus only on the "poor" whereas the effect of inflation is greatest on those with fixed incomes and monetary assets - regardless of their actual level of income.

We are all being raped but the press and media will not take up the issue. The BoE is, as usual these days, failing in its duty.

Martin Marprelate- A Man in the Street!

I'm glad to hear that the Inflation Figure used by the Government has stayed steady. Now when will I experience this in the shops, my energy bills etc?

Nick

@ Martin Marprelate

You don't understand statistics.

The RPI staying steady doesn't mean that prices aren't going up, it means the rate at which prices are rising is staying constant.

Martin Marprelate- A Man in the Street!

So in actual fact Nick this is BAD news not good?

michael mcgough

You get knighted these days for failing to control inflation.
It is difficult not to believe HMG are happy that we have such high inflation.

Commentator

HMG are very happy with high inflation. The banks buy most of the newly-issued gilts at interest rates well below the rate of inflation while HMG let them make a profit by leaning on the BOE to hold down interest rates so that bank depositors get nailed. It's called conspiracy to defraud.

Yet Another Anon

Prices of food and drink are all over the place. It's not just the level of the pound, but also wide variations in global commodity prices. There were huge problems with rice and coffee crops a few years back, more recently there have been very good crops and this is feeding through into prices being stable or falling, on the other hand with wheat and barley the freak heatwaves and massive fires that happened across Russia and other parts of some of the biggest producers in the world and the result is that it is now common to go to by a loaf of bread and find that it has gone up by 10-15p one week and the same again the next week.

Bank Base Lending Rates have to start going up slowly, it's long past time that they should have. It doesn't need to be much, maybe 0.1% a month sustained and over time it will start to have an affect while allowing for people to adjust to rates slowly starting to return to normal over time. Otherwise in a very short time it could be back to the hyper inflation of the 1970s and into the early 1980s or even worse.

Yet Another Anon

And of course also up and coming large economies such as China and India and their demand for a variety of goods, that also is a major factor in pushing up a lot of prices. Changes in personal preferences of consumers in China and India. With energy prices the problems of the UK having increasingly to rely on imports of energy is pushing the costs up and again Chinese and Indian demand for such and their huge buying power.

Commentator

Osborne needs high inflation. How else is he going to reduce the debt? There aren't any net cuts and given Dave's succession of handbrake turns, that's the way things are likely to stay.

The comments to this entry are closed.

Homepage

Categories

Options

Most Updated

Other Pages

Tracker

  • Extreme Tracking