So Spud has seen that Canada has lowered interest rates. Because inflation is down. Therefore,, obviously, the UK must lower rates immediately.
Canada’s inflation, like that of the UK, is falling fast. It hit 1.6 per cent in the year to September.
Prices are, however, falling because economic activity is slowing. The Bank of Canada has already delivered what Andrew Bailey wants in the UK, which is a marked economic downturn with the risk of recession built into it. We are heading that way.
Sigh.
The Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in September, down from a 2.0% gain in August. This was the smallest yearly increase since February 2021 (+1.1%). The main contributor to headline deceleration was lower year-over-year prices for gasoline in September (-10.7%) compared with August (-5.1%). The all-items CPI excluding gasoline rose 2.2% in September, matching the increase in August for this measure.
And loking at core inflation – the policy relevant measure – that’s 2.1%.
Here in the UK core inflation is 3.2%. The UK and Canada have different inflation rates. Therefore interest rates are different.
Gosh, that’s difficult, isn’t it?
Establishing facts is a very neoliberal thing to do and Spud doesn’t want to be contaminated…
Spud just wants to be in charge and run the country his way. Did any of you watch that YouTube video he did where he pretended to be the Prime Minister addressing the Labour party conference? It was a form of cosplay without the benefits of cosplay (some of those woman cosplayers do look rather nice…).
“Canada’s inflation, like that of the UK, is falling fast. It hit 1.6 per cent in the year to September.
Prices are, however, falling …”
Make your mind up. You just told us inflation was 1.6% (a positive number), so prices are rising not falling.
Can it be the Spudinator does not understand the difference beteeen level and rate of change?
Inflation will shortly be rising due to way it’s calculated (BoE said as such)
Services inflation is around 4%,which is a proxy for wage rises in a services based economy
Labour are about to deliver a huge tax rise and hit investors
Recession coming soon
Salamander
It’s a good job he doesn’t have the charisma of a certain Austrian artist and that the economy is in a rather better shape than in the 1930s. However, you have it surrounded. his frustration stems from that desire that society should be ordered according to how he wants it. It may have been one of the various excellent ‘blokes’ who light up the comments columns with their insight but they speculated an extreme form of Dunning – Kruger seems to afflict him. Most people get over it in adolescence but a few cling to it even into old age – rather embarrassing….
It’s 100% likely that the headline UK rate goes back to 2.0 or higher next month as last October’s drop comes out of the calculation. That’s not policy relevant but it will get Spud’s 2 litre excuse engine fired up.
VP the mid century vegetarian had some level of oratorical ability, however despicable his other qualities were. The leader of the Ely Popular Front (membership of one) isn’t quite as eloquent.
I can’t help thinking that Murphy’s endless call for lower interest rates suggests that he has some vested interest, like a large mortgage or mortgages, or just exposure to property prices
Flatcap Army:
It’s certainly possible he has a mortgage. Which at his age and health is a bad thing.
Or it could just be that he sees high interest rates as causing even the Labour Party hacks to say “Wait a minute, maybe we *can’t* borrow as much as we want to without getting downgraded on bond rating.”