Rate of Inflation Jumps

Former Member

Are we witnessing the end of Gordon Brown's lucky streak? Warnings have recently been sounded about Labour's economic management by the IMF & OECD, now we're seeing inflation sharply rise again which will probably prompt an increase in interest rates by the Bank of England.
Oh dear it was never to last and like all things Labour touches, it'll all end in tears.
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=345505&in_page_id=1770

Former Member

A small interest rate rise is hardly the end of the world.

And the CPI is still within target...........

Former Member

Toadborg wrote:

A small interest rate rise is hardly the end of the world.

And the CPI is still within target...........

There's probably more to come as public borrowing goes out of control. Housing market collapses, and recession looms - I think this third Labour administration will beget a recession in this country, and I say this with a sad heart.

Former Member

Hmmm, why on earth start another thread to say what was already said in this thread

:chin:

Inflation has jumped to a whopping great 1.9%

Can anyone remember what it was under the Tories?

Former Member

freethepeeps wrote:

Inflation has jumped to a whopping great 1.9%

Lets keep harking back 8 years, lets keep it relevant to today. It is a significant jump and will have repercussions for all of us in 2005 and beyond.

Former Member

Rich Kid wrote:

Are we witnessing the end of Gordon Brown's lucky streak? Warnings have recently been sounded about Labour's economic management by the IMF & OECD, now we're seeing inflation sharply rise again which will probably prompt an increase in interest rates by the Bank of England.
Oh dear it was never to last and like all things Labour touches, it'll all end in tears.
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=345505&in_page_id=1770

Unemployment also rose last month, and last year the average family's take home pay fell for the first time since 1990. If the Conservatives managed to shut up about immigration for a minute they could be milking this for all it was worth....

Or at least that's what you'd like to think. Despite your claims of a Labour economic disaster, the vast majority of people think Labour has done a better job than the Tories and simply don't trust the Tories on the economy. I wonder why - look at the figures :

The Conservative record

• Average inflation rate 1979-97: 6.5%
• Average unemployment level 1979-96: 2,386,184 (claimant count)
• Average GDP growth 1979-97: 1.8%

The Labour record

• Unemployment today: 828,700 (claimant count)
• Average GDP growth 1997-2005: 2.8%
• Inflation today: 1.9%

Hence, why the Tories don't dare touch the economy as an issue - they'd be crucified!

Former Member

At RK

Sorry, what was the point of a second thread?

And how, EXACTLY, can we be sure that Michael Howard would keep inflation down?

Former Member

Really this change is not that significant, I wouldn't worry about it.

You rightly point out consumer debt and this is indeed a worrying element in the British economy which will have to be dealt with at some point, it does not have to lead to recession however.......

Former Member

Toadborg wrote:

You rightly point out consumer debt and this is indeed a worrying element in the British economy which will have to be dealt with at some point, it does not have to lead to recession however.......

Personal debt is at an all-time high and if there should be a serious hike in interest rates coupled with a falling housing market then big problems loom.
We are already seeing retail spend fall and a number of High Street retailers have gone down the tubes. Stormy days lie ahead me thinks.

Former Member

Rich Kid wrote:

We are already seeing retail spend fall and a number of High Street retailers have gone down the tubes. Stormy days lie ahead me thinks.

Have they? Like who?

Former Member

And how, EXACTLY, can we be sure that Michael Howard would keep inflation down?

answer the question rich kid

Former Member

Personal debt is at an all-time high and if there should be a serious hike in interest rates coupled with a falling housing market then big problems loom.

If there was a hike in interest rates, then the banks wouldn't get paid and would lose billions. This is why it's not going to happen in a million years. HSBC's board of directors have more to do with the way the economy runs than the government.

Stormy days lie ahead me thinks.

They always do mate. It's just a question of how many and who for.

Former Member

bongbudda wrote:

Have they? Like who?

Courts Furnishers, Index, Allders Department stores, Gadget Shop, to name a few, but many others are still struggling including WH Smith & M&S.
http://www.brc.org.uk/DynamicData04.asp?kCat=53&sCat=THE+BRC%E2%80%93KPMG+RETAIL+SALES+MONITOR

Former Member

Maybe the reason these companies have done poorly recently has to do with this...

Tesco profits break through £2bn

http://news.bbc.co.uk/1/hi/business/4435339.stm

Former Member

MrG wrote:

answer the question rich kid

He'd probably reduce public spending cutting the public sector where most of the wage inflation exists. Labour has greatly increased the number of jobs in the public sector but most of them are not on the service delivery front-line, and much of the money Gordon has pumped into organisations like the NHS has gone to feed the raging appetite of the NHS wages bill.

Former Member

Rich Kid wrote:

He'd probably reduce public spending cutting the public sector where most of the wage inflation exists. Labour has greatly increased the number of jobs in the public sector but most of them are not on the service delivery front-line, and much of the money Gordon has pumped into organisations like the NHS has gone to feed the raging appetite of the NHS wages bill.

Nice one - so he IS gonna fuck up the NHS.....

Thats a vote winner if ever I saw one!


:cool:

Former Member

Well Rich Kid what you say about the coming recession doesn't tally with the initial point about inflation rising, something associated with a successful economy.

I see no reason to beleive there will be a period of stagflation in the near future, do you?

Former Member

freethepeeps wrote:

Nice one - so he IS gonna fuck up the NHS.....

Thats a vote winner if ever I saw one!
:cool:

Thats simply your misinterpretation. In reality there isn't that much difference between Labour & the Tories, the Tories will only spend a little less and tax a little less.

Former Member

As has been said there is already another recent thread on a similar topic, so this is closed