We read daily reports in the UK media about double dip recession, increasing national debts, imminent defaults, market volatility, record low interest rates, quantitative easing and inflation consistently running higher than government targets.
Inflationary Pressure aims to present publicly available data in a format that simply shows the affect on the public’s pockets, and compares the cost we pay for goods and services in 2011 with previous years.
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HOW ARE YOU AFFECTED BY INFLATION ? | |
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Pensions: Will I be able to live off my pension or will inflation make it worthless in the future...... |
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Utility Bills: How expensive will my monthly bills become ...... |
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Property: I’m saving hard, but when will I be able to afford to buy a house..... |
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Salary: What salary increase do I need to need to be able to maintain my standard of living..... |
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Motoring: Surely the cost of running a car cannot get any more expensive.... |
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Inflationary Pressure Links |
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Manufacturing data show inflationary pressure easing Inflationary pressures in Britain continued to ease in January, though there were tentative signs rising oil prices have slowed the rate at which inflation is declining. Prices manufacturers charge rose by 0.5 per cent between December and January, according to the Office for National Statistics’ producer price index, slightly more than economists had expected. It was the largest monthly increase since April last year, a result of higher alcohol, petrol and clothing prices. Rising export prices from China add inflationary pressure to India There is a China hand in India's inflation, one important reason why the steady rise
in interest rates may not be cooling the high inflation. About 25% of imported inputs
that go into manufacture of goods produced locally are imported from China. In addition,
a third of consumer goods imported into India come from China. In addition, imports
of other manufactured goods, such as projects goods and machine parts, 25- Productivity Data Shows No Inflationary Pressure from Labor Market Unit labor costs in nonfarm businesses increased 1.2 percent in the fourth quarter of 2011, as productivity grew at a slower rate (0.7 percent) than hourly compensation (1.9 percent). Unit labor costs rose 1.3 percent over the last four quarters. Annual average unit labor costs increased 1.2 percent from 2010 to 2011. BLS defines unit labor costs as the ratio of hourly compensation to labor productivity; increases in hourly compensation tend to increase unit labor costs and increases in output per hour tend to reduce them. The good news... there is no inflationary pressure whatsoever at the moment in labor. The bad... this is because the labor market is soft (though hopefully we see some more positive signs tomorrow morning). Idle resources keeping inflationary pressures low After weeks of nothing but cloudy skies and dreary headlines, we finally got some good news on the U.S. economy on Tuesday: Industrial output increased in July at the fastest pace in seven months. The report from the Federal Reserve dispels some of the gloom about the economy falling back into a recession. Industrial production is one of four key indicators that the experts use to judge whether the economy is expanding or not, and with production up 0.9% in July and 3.7% over the past year, the economy was definitely expanding in July. he higher the capacity utilization rate, the more inflationary pressures we have from production bottlenecks. When the economy strains to produce all the goods that are being demanded, desperate buyers can bid up the prices of any good or service that’s in short supply. Easing inflationary pressure to buoy Asian equities BNP Paribas Investment Partners' head of Asia Pacific Equities Arthur Kwong believes inflation will start to slow in the region, to the benefit of Chinese and Indian companies. Inflation continues to be a top theme for the quarter, though not as a risk factor. We expect to see inflationary pressures ease during the quarter, providing a boost to Asian equities. There are signs that inflation is easing already with many commodity prices holding steady or declining. We don't expect a repeat of last year's skyrocketing food prices, which were caused by unusually adverse weather conditions. Weather patterns in Asia have been more predictable this year and the monsoon season in India and Pakistan fairly typical, without the catastrophic flooding seen a year ago. Food prices high but inflation pressure may ease Inflationary pressure from world food prices may be lower in 2011/12 than a year ago as crops are improving, but prices will remain at high historical levels, a senior economist at the United Nations' food agency said. The UN's Food and Agriculture Organisation (FAO) raised on Thursday its 2011/12 global grain output view to reflect the latest U.S. data and unexpectedly said world food prices it measures rose one percent in June on higher sugar prices. Suppressed inflationary pressure exists The Reserve Bank of India (RBI) today warned about the invisible and ‘suppressed’
inflationary pressure in the economy, owing to large under- Interest rates stay on hold despite inflation pressures The Bank of England has kept interest rates on hold at 0.5 per cent. The decision to maintain record low rates was widely expected after a set of gloomy economic indicators. There had been rumours May would be the month that policymakers would increase interest rates, meeting due to fears over mounting inflationary pressures. In addition, the rate of inflation unexpectedly slowed in April to 4 per cent which, while still double the Government's target, eased pressure on the MPC to act. UK interest rates have now remained at their all- Rising UK Temporary Labour Rates in 2011 Reflect Inflationary Pressures in the UK A new report from IQNavigator shows that UK temporary labour rates for clerical,
IT and professional roles increased significantly and more than US rates in 2011,
reflecting increases in the UK Value Added Tax (VAT) and National Insurance (NI),
as well as UK inflation rates. The data comes from IQNavigator, the leading services
procurement solution provider for the Global 2000, and is based on actual hourly
rates paid to staffing agencies by large private- |
Inflation Investing |
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The cost of living could double over the next decade or two. What are you going to
do about it? If you are young and still in the workforce, your best defense is your
talent. Wages tend to keep up with inflation, at least over long periods. If you
are retired, you’ve got only your balance sheet to lean on. In this report I’ll look
at seven strategic moves for combating the Consumer Price Index. Companion pieces
will take up fixed- Inflation And Investments. When it comes to inflation, the question on many investors'
minds is: "How will it affect my investments?" This is an especially important issue
for people living on a fixed income, such as retirees. The impact of inflation on
your portfolio depends on the type of securities you hold. If you invest only in
stocks, worrying about inflation shouldn't keep you up at night. Over the long run,
a company's revenue and earnings should increase at the same pace as inflation. The
exception to this is stagflation. The combination of a bad economy with an increase
in costs is bad for stocks. Also, a company is in the same situation as a normal
consumer - Inflation- If you have money to save or invest, how can you find a return that is higher than
inflation? In January the inflation rate, as measured by the Consumer Price Index
(CPI), fell to 4.2% from 4.8%. The Bank of England is predicting this rate will fall
below its 2% target by the end of 2012. However the Bank has been making a similar
forecast for the last three years and it has not managed to get inflation down yet.
In the meantime, the Bank's main interest rate remains at its historic low of just
0.5%. There are now some experts who predict that interest rates will remain low
for another year or two and that rates may then rise only slightly, perhaps to 1%.
And no- Investing for Inflation (and Deflation) Investors on both sides of the Atlantic are nervously vacillating between worrying
about rampant inflation and Japanese- Best Investments During Inflation So, what is the best investment during inflation? The good news is that there are a multitude of securities and assets that can protect against inflationary pressure. The bad news is if such a scenario comes to fruition, your purchasing power is reduced. The main thing to keep an eye on is the money supply. Throughout the crisis, the monetary base has expanded, but has yet to materialize in the money supply. If/when this comes to fruition, you'll be prepared after learning how to invest for inflation below. Interestingly enough, deflation has been the top concern amongst investors as of late and yesterday we detailed the best investments during deflation. But investors have quickly forgotten that inflation was the primary concern just a mere few months ago. This revisits a post we originally published in August 2008 examining investment scenarios for inflation versus deflation. Regardless of outcome, investors need to be prepared for either. Investing Strategies for Inflation es, it’s coming. That looming certainty. Rates will rise, prices will increase and milk will cost an arm and a leg. We are already seeing the beginning effects of it. What causes it? Too many dollars chasing too few goods. Remember that girl in school who always had three or four guys to choose from for Friday night dates? The guys went out of their way to do more and more extravagant stunts to impress her. Buying flowers, crushing the competition in football, tripping her when all else failed. You get the idea. Well that’s the same idea behind inflation. When the government prints more money, there is more inflation. Selling government bonds is one way that they print money and government spending is another way. It’s Inflation. Yes there are ways to prepare for inflation by stocking up on essentials, but what about your portfolio? How do you inflation proof your portfolio? There are two really easy ways to take advantage of inflation, especially if you are willing to take on a little risk. Buy Commodities Investing Myths Debunked Regarding Inflation And How To Beat it With A Shovel With the US Government keeping interest rates at the lowest possible level while printing money like there is no tomorrow (QE3 coming up anyone?), all we can fear is to see climbing inflation rates to come. In addition to this, the prices of commodities are rising and if you live in Canada, it’s not any better as the Bank of Canada resists raising interest rates based on economic uncertainty and a already strong dollar. However, this hasn’t stopped inflation from rising in the meantime… So you probably want to protect your portfolio against inflation. How can you do it? Gold? Real Estate? Think again! I’ll debunk these 2 investing myths by stating that gold and real estate offer the best protection against inflation. ETP Investing for U.K. 'Stagflation' Investors looking to overweight inflation- The impact of inflation on UK investments The Bank of England's inability to control inflation will inflict a heavy burden
on us all, warns Barry Riley, but enterprise - Inflation Proof Investments: the best alternatives to National Savings (NS&I) NS&I's withdrawal of index- Tesco back with second inflation- This is the second such bond to be issued by Tesco Bank and can be bought and sold
by investors exclusively through stockbrokers or wealth managers with a minimum purchase
of £2,000. It can be held within a stocks and shares Isa or a Sipp. Over the eight- Your best shot at inflation- Today’s issue will likely be divisive. Some readers will dismiss what I’m saying out of hand and I’m prepared for some animated discussion on the comments page. That’s OK. Debate is good. A clash of opinions is what makes a market, after all. Here’s what’s on my mind. Then you can tell me what you think. Lately, there’s been a lot of scare mongering, moaning and bleating about inflation. Things like “Inflation is on its way to hyperinflation…”, “I’ve been robbed by the government…” and the classic “Quantitative easing is counterfeiting…” Frankly, I’m fed up with all that moaning. Let’s take a close look at what’s really going on. And rather than complaining about ‘getting robbed’ – let’s first understand the situation so that we can learn to live with what’s thrown at us. Can residential property help hedge against inflation? Why should investors be worried by inflation? The Bank of England has to date purchased
£200bn in assets and while there is debate as to the risks of the Quantitative Easing
policy, consensus is building that one of the negative outcomes will be an increase
in the levels of inflation. The Bank of England’s inflation target is 2% but is currently
running at 3.7%. If we factor in the increase in VAT and commodity prices, coupled
with a weak sterling adding to the cost of imported goods some economic commentators
have suggested that inflation could reach between 4%- |
Inflation Pensions |
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Utility Bills |
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Inflation tempts pension funds from bonds to stocks With inflation at a 20- Silver Inflation: Why Some People’s Pips Are Squeaking What’s the rate of inflation in your household? Almost certainly not the broad- Silver RPI shows inflation damage to pensioners A special index used to measure the cost of living for pensioners has illustrated
the devastating impact of inflation on older Brits. The Silver Retail Prices Index
(RPI), used by Age UK to measure the cost of living for over- What are inflation linked (RPI) annuities? If you are shopping for an annuity and are concerned about future rises in the cost
of living then you may be attracted to what are known as inflation- Inflation Can Devastate Even a Good Retirement Plan "Inflation is when you pay fifteen dollars for a ten- Effects of inflation on pensions There has been a spate of economic data over recent months concerning the rising cost of living. Mortgage, food shopping and petrol costs have jumped forcing the annual rate of inflation over 3.3% p.a. How should pension investors best cope with inflation. At Retirement. Inflation is even more of a worry for pensioners as their expenditure includes more of those items that are rising in price fastest: in particular food, fuel and council tax. Some estimates have put pensioner inflation as high as 9% a year. If you take a level income at retirement, your spending power evaporates as inflation rises. For a man age 65, by the time he reaches normal life expectancy £1,000 annual income will be worth just £440 with inflation of 4%. However 87% of annuitants opt for a level payment. Inflation and Pension Annuities The effects of inflation can in some circumstances have a profound effect on the
income level from a pension annuity. For those who choose a fixed rate annuity, the
annual income will be fixed for the rest of their life. This is a popular option
as annuitants know exactly how much money they will receive until they die and so
can plan accordingly. However, if there are sharp increases inflation over several
years, the increased price of living may mean that many who have purchased a conventional
annuity may have wished they had opted instead for an inflation- Pension switch ruled lawful by High Court The government's public sector pensions policy has been given a major boost following
a High Court ruling. Trade unions had complained about how pensions are being protected
against inflation, with the Consumer Prices Index (CPI) replacing the faster- How rising inflation can destroy your pension Inflation is eroding the value of pensions over time, and following the rise in inflation in December experts are warning pensionholders to be more astute with their retirement income or risk losing out over the long term. 'Anyone who has bought a fixed annuity [which provides a regular income for life] could see the value of their pension erode significantly over time,' says Dr Ros Altmann, director general of Saga. She adds: 'The longer they live, the poorer these pensioners become, as the real value of their fixed pensions is reduced by inflation.' So what can you do? Read our Q&A on pensions and inflation to give you the background to help protect your pension from inflation. Inflation and its effect on pension benefits Inflation and interest rates play an important role in pension provision, and there is a risk element involved with them both. The effect of inflation on defined benefit pension schemes. In a defined benefit pension scheme low inflation and interest rates have increased the value of the pensions payable to members and tended to make schemes less well funded, which reduces member security. High inflation and interest rates will tend to have the opposite effect as it reduces the spending power of your pension during retirement. Most private sector pension schemes have a ‘cap’ on the pension increases they pay to pensioners, so over the longer term, high inflation would erode the value of your pension. High interest rates reduce the value of members’ benefits but the security to the benefit itself should improve. However, in such situations in the past, politicians have intervened to make schemes provide better inflation protection on benefits. |
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Households £1,300 poorer despite falling inflation The average British household would need to spend almost £1,300 just to maintain the same living standards as a year ago, despite inflation falling to its lowest level for 14 months, economists have warned. The Office for National Statistics (ONS) said yesterday that CPI inflation in January fell to 3.6 per cent, down from 4.2 per cent in December. This means that the cost of living is rising at its lowest rate since November 2010. However experts said that inflation remains at almost twice the Bank of England’s target level of 2 per cent. The continued rising cost of goods and services means that the UK’s 26 million households would still collectively need to spend an extra £33 billion just to enjoy the same standard of living as 12 months ago, according to calculations by pensions company MGM Advantage. This works out at £1,259 for every household in the country. Inflation low, but household bills rising in '04 Economists have been saying for months that inflation is in check. You'd never know
it from the size of the bills we'll all be paying next year. Many household expenses
will rise next year much more than inflation - Water bills rise above inflation WATER and sewerage bills are to rise by £21 a year for Yorkshire households from April, regulator Ofwat has said. The average UK bill will increase by 0.5 per cent above inflation to £376, taking into account a rate of inflation of 5.2 per cent, the water companies’ watchdog said. In Yorkshire the cost of water will raise by a household average of 6.1 per cent to £166 a year for water and £195 for sewerage. The announcement comes after Ofwat pulled back from deep cuts in household bills in 2009 in its final decision on prices for the next five years. Water bills set to rocket by 5.7%, Ofwat reveals Water and sewerage bills will increase on average by 5.7% in April according to industry regulator Ofwat, piling fresh misery on UK homeowners. Families will face an overall price increase of around £20, taking the average household bill to £376, 0.5% above inflation. Ofwat chief executive officer Regina Finn said: ‘When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. Savings focus shifts to household bills The latest Moneymood survey from Legal & General shows a shift in focus among savers
towards short- Families are being hit by the biggest increase in the price of clothes for more than three decades, figures revealed yesterday. Average price tags on clothes and shoes have soared by 13.2 per cent in the last year, according to the Office for National Statistics. This is the biggest annual rise recorded since 1980 and comes at a time when families are facing an unprecedented attack on their finances. Utility Bills Are Consumers Biggest Worry The British Retail Consortium say that a third of consumers say utility bills are their biggest worry and are concerned that they have no spare cash to pay for basics. The British Retail Consortium (BRC) said British consumers felt they had no spare cash for luxuries or savings and were concerned they didn’t have money to pay their debts. The BRC said consumers are worried about spending because of rising utility bills, the economy and high petrol prices. UK inflation rate pushed up by utility bills The rate of inflation in Britain continued to climb last month, official figures
revealed today, as utility bill hikes hit a two- The easy way to defeat rising inflation Invest in your budget The easiest way to defeat inflation, or rather the effects of inflation, is to invest
in your budget. What I mean by this is to focus on your expenses - Brits hurt by utility bills as inflation soars, survey finds Over a third of all Britons are finding it difficult to meet electricity and gas bills, forcing many current and prospective homeowners to think carefully about their future in the property market. In the study carried out by swiftcover.com, one in every four people said they worried about meeting monthly mortgage payments and were concerned that they may have to sell their home quickly, to adventurous private buyers or professional companies such as Tom Craven Property. Research from the insurance provider discovered that gas and electricity bills remain the largest financial concern for Britons; 39 per cent cited utility bills as their primary concern, while the study also revealed that a quarter of people were even concerned about feeding their family. Inflation rate drifts up to 4.5% after 2- The headline rate of inflation ticked up previous month by significantly less than
some economists had feared, despite a two- Utility Bill Hikes Accountable for Further Inflation Rise Inflation figures released Tuesday show that UK inflation has reached a three year high thanks to a huge rise in the cost of both utility and food bills. The inflation rise, up from 4.4 per cent to 4.5 per cent, has been blamed on utility price hikes as well as the rising cost of food prices across the UK. The Bank of England is expecting the CPI to reach five per cent this year as more utility companies increase their prices, reports the Financial Times. |
Inflation Food |
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Inflation Shopping |
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By February 2011, food was nearly twice as expensive as at the beginning of 2005,
according to the World Bank's index of real global food prices. But the local price
of food in developing countries has not risen quite as sharply in recent months as
global prices have. This is in part due to exchange- USDA: Food inflation to accelerate into 2011 Food inflation will “accelerate” during the final months of 2010 and into the first six months of 2011, especially for meat, cereal and dairy products, the U.S. Agriculture Department said Monday. U.S. food companies have already started to raise prices to blunt price spikes for a number of commodities, including corn, wheat and coffee. “Although inflation has been relatively weak for most of 2009 and 2010, higher food commodity and energy prices are now exerting pressure on wholesale and retail food prices,” USDA food economist Ephraim Leibtag said. Pork prices in 2010 are now forecast to rise as much as 5.5% over 2009, compared with the Aug. 25 estimate for an increase of up to 4%, the USDA said in its monthly update. Beef prices are expected to increase up to 3.5% against the previous 3% gain. Meat prices have been going up, following a painful restructuring for U.S. meat companies that slashed output and bankrupted smaller hog producers. This has driven up lean hog and live cattle prices in the futures market over the past year. Lean hog prices have begun to ease lately. Inflation eases as food prices fall The Bank of England is widely expected to hint on Wednesday that it could pump more electronic money into the economy after inflation eased back last month. The Bank is seen cutting its forecasts for both growth and inflation when it presents it latest outlook given the headwinds facing the UK economy from the eurozone crisis. Thanks largely to supermarket food price wars, inflation last month was 5%, down from 5.2% in September and below economists' expectations for 5.1%. The rate, as measured by the consumer prices index (CPI), is still more than double the Bank's target but the downward move lends some support to policymakers' assertions that inflation will fall back sharply in coming months. Food inflation is only going to get worse in future, warn scientists The era of cheap food is over, and prices are likely to rise significantly in coming decades, due to the increase in the global population and a worldwide shift towards eating more meat and dairy produce, a major study into the future of farming has concluded. Governments will have to embrace new agricultural techniques, including genetically modified (GM) crops to boost food production, according to scientists who compiled the report, The Future of Food and Farming. They warn that the existing food system is failing in two major ways: nearly a billion people in the world are left hungry, with another billion suffering from dietary deficiencies; at the same time, agriculture is continuing to degrade the natural environment in a fundamentally unsustainable way. 9 Ways to Prepare for Food Inflation If you’ve been to the grocery store lately, you’ve no doubt discovered that the price of most foods has increased significantly. There’s plenty of blame to go around: increased commodity prices due to increased demand, increased oil prices, devaluation of our dollar, and on and on. Whatever the reason, increased food prices are putting a major dent in our household budget. Since we can’t do much about the prices, we have to look for other ways to reduce (or at least keep even) our overall food expense. Food is a unique budget category in that normally when you are struggling with less income and/or increased costs, the natural inclination is to turn to cheaper alternatives. Unfortunately, as many people are discovering, when it comes to food this means an unhealthy diet. Think of the cheapest foods at your local grocer – they are likely cheap pastas and boxed processed foods (Ramen noodles, mac and cheese, packages of potato flakes sold as “instant mashed potatoes,” etc). While these foods will do in a pinch, they aren’t exactly healthy staples to build the basis of a clean diet. Hidden Inflation: Food Prices Flying Under the Fed's Radar Soaring food prices have been, perhaps, the most pressing global issue of the past two years – yet the U.S. Federal Reserve has taken a "hear no evil, see no evil, speak no evil" approach to the global crisis. Instead, the Fed has dutifully maintained its focus on so called "core inflation" in the United States – even as Americans suffer the consequences of the "hidden inflation" the government refuses to account for. The Federal Reserve excludes food and fuel prices from its preferred gauge of inflation because they are often influenced by erratic weather patterns and political turmoil. That at times has been the case over the past few years. Inflation and Pension Annuities The effects of inflation can in some circumstances have a profound effect on the
income level from a pension annuity. For those who choose a fixed rate annuity, the
annual income will be fixed for the rest of their life. This is a popular option
as annuitants know exactly how much money they will receive until they die and so
can plan accordingly. However, if there are sharp increases inflation over several
years, the increased price of living may mean that many who have purchased a conventional
annuity may have wished they had opted instead for an inflation- No Inflation? That's Not What Food Prices Are Saying With all the talk about $4 a gallon gas and the crisis in the Middle East, the specter of surging food prices has gotten pushed to the background. That’s a mistake, considering that the struggle to put food on the table is what generated the riots in the first place. In the US we focus so much on gas because of the way higher transportation costs infect every sector of the economy, but rising grocery costs are a major threat as well. Of course, we live in the land of no inflation. Core cost of living is cruising along in the 1 to 2 percent range, according to government calculations, indicating that we have nothing to worry about when it comes to inflation concerns. One can only imagine that the economists who project these assertions don’t have to eat. Inflation, Food Prices, Energy and What it Means To You Inflation in one- Food inflation is far worse in grocery stores than restaurants Your grocery bills are climbing at a much faster pace than restaurant prices. According
to the latest government figures, the consumer price index for food at home increased
by 60 basis points year- Food inflation is now the most important household expense, according to Wal- How rising food prices push up inflation in the UK The Commodities Research Bureau/Reuters Food index measures moves in global food
prices. Around 11% of the UK CPI (consumer price index) consists of foodstuffs, with
a further 12.5% accounted for by hotel and restaurant prices. So the CRB/Reuters
food index is a useful indicator of future cost of living rises. What's the latest?
The CRB/Reuters food index had risen by more than 10% last year in sterling terms
on a mix of rising demand, commodity speculation and various supply problems. As
of now, the index is in fact down around 9% year- |
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Inflation rises to 4.5% for August Clothing and footwear costs were 4% higher in August than in the same month last
year. UK inflation rose last month as higher transport costs, utility bills and clothing
prices all helped to push up the cost of living. The consumer prices index rose to
4.5% in August, up from 4.4% in July, driven by the biggest annual rise in water
and energy bills in more than two years. A surge in the cost of clothing and footware
last month also drove CPI higher, according to data from the Office for National
Statistics. Clothing costs jumped in August, rising by 3.7% compared with July. This
is the biggest month- Food and clothing price rises lift inflation Prices rose unexpectedly fast in November, driven mainly by the higher cost of staple
consumer goods, official data have revealed. The consumer price index rose 0.4 per
cent, more than it had for any previous November since the start of the index in
1997, the Office for National Statistics said on Tuesday. Prices are now 3.3 per
cent higher than a year ago, up from 3.2 per cent in October; economists had expected
inflation to remain steady. In particular, prices for food and non- UK shop price inflation slowed in January Retailer price wars helped to drive the cost of clothing, furniture and electrical
goods lower in January compared with a year earlier, providing some good news for
the squeezed British consumer. Non- UK inflation drops to 4.2% in December as fuel and clothing prices fall Sharp falls in the price of petrol, gas and clothing in December saw inflation fall
at its fastest rate for three years, according to the latest inflation figures from
the Office for National Statistics. The Consumer Prices Index (CPI) annual rate of
inflation dropped to 4.2% in December compared to 4.8% in November, while the Retail
Prices Index (RPI) (which includes mortgage interest payments) fell from 5.2% to
4.8%. Stiff competition in the run- The mystery of clothes inflation and the formula effect INFLATION surged in December to 3.7% and could rise above 4% in early 2011: that
was this week’s big economic story. But it was based on the consumer- UK: Clothing contributes to slowdown in inflation Higher clothing prices contributed to a rise in inflation in November, according
to official figures released today (13 December), but the overall rate is slowly
moving down from highs seen earlier this year. The Office for National Statistics
said the Consumer Prices Index (CPI) - UK Inflation Eases as Food, Transport, Clothing Price Rises Slow British consumer price inflation eased in November as expected, helped by a slowing
rate of increase in the prices of food, transport and clothing, the Office for National
Statistics said on Tuesday. Consumer prices rose 0.2 percent last month, taking the
annual inflation rate to 4.8 percent, as forecast by analysts. The biggest downward
pressures on annual inflation came from food and non- Inflation fears resurface on rising clothes prices Fresh evidence that inflation pressures are still building in the economy has emerged as clothing and textile prices rose at their fastest rate since records began, causing UK producer prices to fall by less than expected in April. Clothing and textile prices rose by 4.6pc as core producer price inflation – which strips out volatile food and energy prices – soared to its highest level since September last year, at 3.4pc. The pound rebounded from recent falls against the dollar on expectations that the Bank of England will have to address inflation by raising rates as soon as it considers the economy sufficiently resilient. Debt and inflation ‘now a problem for children’ It is not just adults who are suffering from debt and inflation problems, according
to a new survey, with children's pocket money now being affected. And a specific
problem faced by children has been what the bank calls "kidflation", where the goods
they typically spend their money on have soared in price by 68 per cent more than
the Retail Price Index (RPI) rate in the last three years. Inflation- Weaker clothing prices help drive down inflation Clothing and footwear prices have helped to drive down inflation 0.1% to 1.3% for last month, according to Office of National Statistics (ONS) figures released today. The main downward influence on consumer price inflation (CPI), the government's preferred method of calculating inflation, came from adults' and children's clothing which experienced weaker price recoveries and more special offers than a year ago. In addition, less replacement stock came in at higher prices this year. A further downward influence on the inflation rate came from recreation and culture, in particular from toys, where prices rose by less than last year. A smaller downward effect came from computer games and consoles. Partially offsetting upward effects came from changes in the cost of personal computers, theatre admissions, and foreign holidays. Inflation rate drifts up to 4.5% after 2- The headline rate of inflation ticked up previous month by significantly less than
some economists had feared, despite a two- UK inflation edges higher in August The Office for National Statistics (ONS) today announced Consumer Price Inflation (CPI) rose to annual rate of 4.5% last month from July’s rate of 4.4%. However, clothing and footwear was also a contributor to higher inflation last month. UK inflation continues to remain more than double the target of 2% and has been above this level since December 2009 and is expected to remain above target during 2012. The Bank of England has previously warned that inflation could reach 5% later this year, driven higher by rising energy and food costs but should return to target by 2013. |
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1 Yr |
5 Yr |
10 Yr |
20 Yr |
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RPI - |
4.2% |
19.3% |
35.4% |
68.6% |
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CPI - |
3.6% |
17.3% |
28.3% |
5.4% |
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Average Salary |
1.2% |
12.8% |
35.7% |
103.8% |