Core CPIH (excluding energy, food, alcohol and tobacco) rose by 4.2% in the 12 months to June 2024, the same rate as in May
As ever he never does bother to look at the policy relevant rate, does he?
Fur example, the price of goods is deflating, whilst the price of services is above the 2 per cent rate as, being labour based, these are still catching up with past inflation. This services rate will now be used by the Bank of an England as an excuse to keep interest rates very high, if they cut them at all. But the reality is that inflation has hit the target rate. The target rate was never sector based. It was the overall figure. Any excuse they made will be a sham to justify imposing misery.
Sigh.
He has a point. The BoE remit is not to get core inflation down its to get overall inflation down. Now it may very well think that core inflation is still too high and if they cut rates overall inflation will take off again, but thats a prediction, not a fact, and one assumes they are supposed to base their policy making on facts not ifs and maybes. Something else might happen that means the price of oil drops suddenly, or food prices nosedive, or whatever. Its the future, no-one actually knows whats going to happen.
So it is perfectly reasonable to argue that inflation has met the statutory target, and rates should be lowered. If inflation picks up again later they can go back up after all. There appears to be this stupid public sector idea that they must always be right all the time, and never have to reverse a policy, and have the future mapped out perfectly, rather than just react to what happens instead, even if that means changing tack sometimes.
@Jim
The problem is that the Bank is predicting an increase in inflatiuon becuase of the way it is calculated and large effectors dropping out of the calculations as part of the rolling 12 month average
If they are to maintain this completleya rbitray target then they have to take account of that – and it is predictable
Core CPIH (excluding energy, food, alcohol and tobacco)
The problem with this is that the above excluded items constitute about 85% of my shopping.
Yeah MG, but excluding the bit that you’re causing is standard politician. Always shift the blame.
Spud is insane. his latest rant is that high taxes are the only way to combat fascism. If only they had known that in 1920s and 1930s Italy and Germany.
Take that Hitler, we’re putting up CGT to income tax rates!
Andrew C
So many windmills and so little time to tilt at them for the portly “Don Quixote of the Fens”!
FFS, someone get the fat fvck a horse and a lance.
Wasn’t Rosinante an ass?
bloke in spain said:
“Wasn’t Rosinante an ass?”
I thought Rocinante was a horse, but his squire Sancho Panza rode an ass.
But perhaps that’s just the English translation; ask a local?
Rocinante was Quixote’s mount, Dapples was Panza’s. I have friends who have called cars, bicycles, and motorcycles Rocinante (I have very cultured friends), but none Dapples. My bike is named Thomas “Rusty” Steed (TRusty Steed).
Murphy combines the mentality of Quixote with the physicality of Panza.