UK NEWS

INFLATION SET TO REACH 4%

Food prices have soared in recent weeks

Tuesday June 17,2008

By Julia White for express.co.uk

Comment Speech Bubble Have your say(19)

FURTHER rises in fuel and food prices have pushed inflation up to 3.3 per cent, with the Bank of England warning it could reach 4 per cent by the end of year.

The Consumer Price Index rose by 0.3 percentage points to 3.3 per cent during May - the highest reading since the measure was first reported in January 1997.

The cost of living has now risen more than 1 per cent above the Government’s 2 per cent target and means the Bank of England Governor Mervyn King has to issue an explanation about what he intends to do to get the figure back down.

Mr King’s letter will be only the second of its kind since the Bank was granted independence in 1997.

Inflation has been on a steady climb since last August and jumped 0.5 percentage points last month to 3 per cent - the biggest monthly rise for nearly six years.

Soaring fuel and food prices pushed inflation above 3 per cent in May to its highest reading since records began more than 11 years ago.

Surging gas and electricity bills, food prices and Budget tax hikes on alcohol and tobacco were blamed for the leap, which significantly reduced hopes of further interest rate cuts this year.

Upward pressure on prices continued last month thanks largely to the relentless rise in the price of oil - a widespread component of industry raw materials.

Chancellor Alistair Darling said that he and the Prime Minister were “working across a range of international fora” to tackle price rises and added that inflation was moderate compared with the 1970s and 1980s.

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THIS ONE IS FOR ALL THE SELF CERTS!

18.06.08, 9:07am

Housing fraud - fibbing on loan applications, overstating incomes, faking employment histories and making other false statements in order to qualify for the would-be borrower's dream house - "is a much bigger deal(PROBLEM)than we thought it was," ..Merle Sharick,vice president of the Mortgage Asset Research Institute.
What has this got to do with this article..everything!

• Posted by: Serious • Report Comment

TO HAVE A BUST......

18.06.08, 9:01am

....YOU HAVE TO HAVE A BOOM,AND ACCORDING TO ALL THE EXPERTS THE UK HAS HAD ONE HELL OF A PROPERTY BOOM.What has this got to do with this article...everything!It's all well and good saying i've brought my property(NOT),when you cannot even afford to keep it warm never mind eat in it!
And the script reader at the B O E (KING) says it is going to get worst.I knew it but how many of you with you're head in the clouds did!

• Posted by: Serious • Report Comment

OH WELL..

18.06.08, 8:47am

I bet all the i've brought my property(NOT)mob did not see this one coming or did not want to!
"We're going to go into stagflation",Dr Jerome Corsi PHD on the Alex Jones Radio Show 14th August 2007.He also said this was a GLOBAL CRISIS which has been engineered,the puppets ..KING,BROWN et al are just following orders.You will now see them start to turn up the heat(INTEREST RATES)and things will still get worst!JOB LOSSES,FOOD AND FUEL INCREASES,MORE BANKS TAKING HUGE LOSSES,A FURTHER TIGHTENING OF CREDIT(DEBT),PROPERTY PRICES FALLING LIKE THEY HAVE NEVER FALLEN BEFORE.Oh just before i go,when things like all the above happen CRIME EXPLODES!

• Posted by: Serious • Report Comment

INFLATION

18.06.08, 4:54am

Prudence Brown will have massaged those figures down to less than 1% by September to make sure that the OAPs get about a pound a week rise in their pensions. Yet today MPs want a 21% rise. MPs decide our pay increases so we the voters and taxpayers should decide theirs. Most of them are overpaid as it is.

• Posted by: ThaiMike3 • Report Comment

ASK 12 ECONOMISTS AND GET 13 DIFFERENT OPINIONS!

17.06.08, 8:21pm

Stevewo rightly castigates our failures over economics. Mrs Thatcher held similar views about economists. She did not even trust her own Chancellor Lawson preferring to take advice instead from her economic adviser Sir Alan Walters. To my mind economists are just a bunch of overpaid quacks. In theory deflation could not possibly happen - then along came Japan. Now we are confronted with stagflation which throws them all into confusion and despair.

After 1929 President Hoover supported by an army of economic "experts" threw everything at the post crash economic crisis including cheap money, wage increases, subsidies to farmers, massive public works, increases in taxes, curbs on immigration - the list is endless. He should have left office a hero but when Roosevelt took over in 1933 the USA was in economic ruins and the Great Depression continued until 1939. So much for the experts!

• Posted by: panadero • Report Comment