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Rishi is being economical

Inflation fell to the UK’s official target in May for the first time in three years, a decline seized upon by Rishi Sunak as evidence that the economy has “turned a corner” under his premiership.

The rate of price growth across the UK economy slipped to 2 per cent on an annual basis last month from 2.3 per cent in April, according to data from the Office for National Statistics, in line with City forecasts.

The one that matters for policy decisions:

Core CPIH (excluding energy, food, alcohol and tobacco) rose by 4.2% in the 12 months to May 2024, down from 4.4% in April;

9 thoughts on “Rishi is being economical”

  1. As you say, core inflation is still above 4%, and food prices are 25% higher than they were in 2022.

    Also, no one is highlighting that it was the actions of these same cunts crowing about their ‘success’ in lowering inflation that forced it up to 9.2% in the first place.

  2. I’ve always thought it bloody stupid to include housing. The main cost of housing (rent/imputed owner-occupier rent) is interest. Oh dear, the cost of housing has gone up -> this is inflation -> we must do something about it -> put interest rates up -> oh look, the cost of housing has gone up even more…

  3. And RPI is … higher too! Breakeven implied inflation in 5yr and 20yr RPI swaps is (drum roll). 3.9% and 3.4% respectively.

    So markets don’t appear to buy into the 2% is here to stay view.

  4. Who says the Core CPIH is the one that matters? The BoE website states that the 2% target relates to CPI.

  5. CPIH matters as people pay for accommodation so need the (H) part as it stands for housing.

    Obviously those who bought before and made a bundle are not affected but new family formation can be buggered up.

  6. Obviously those who bought before and made a bundle are not affected but new family formation can be buggered up.

    Miriam Cates MP is the only MP I’ve ever heard of who has even brought up the critical issue of family formation / demographics. For her trouble, the other sniggering Tories seem to have decided she’s a weirdo who I assume will be managed out the door.

    It’s not as if they’re busy doing more important stuff. They just have nothing of importance or even relevance to say anymore, and they’re already daring you to laugh every time they mention Rwanda.

    Vape bans? Conscription? Even more disguised subsidies for Bharat Homes? Fuck off.

  7. If you think the prospect of a Labour government is doom & gloom, worth reading the hyperbole being generated about France & the prospect of an RN victory & a possible Marine for President.
    https://www.telegraph.co.uk/news/2024/06/19/coming-french-revolution-will-destroy-eu-and-starmer-dreams/
    They’re going back as far as the Waffen-SS Charlemagne Division now.
    If one’s actually followed French politics, the FN & now the RN are nothing new. The FN were long in local government & weren’t bad at it. Very strong in Marseilles & my north. I’d be willing to predict Marine will be much like Italy’s Meloni. Handed actual power she’ll adapt to the situation & actually do quite well. Although expect a lot of her election promises to be taking a back seat. But when did you believe a politician’s promises anyway? Which is of course the danger for the EU apparatus. She starts sorting out the French economy she’ll be leading the member states to the right. So how long will the left hang on to control in Brussels? Indeed though, bad news for Starmer.

  8. Sunak’s latest on Conscription refusal:

    Fining parents of 18 yo adults not enough. We’ll take away the 18 yo’s driving licence too

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