Inflation rate jumps to 2.9%

[mattheman]

http://news.bbc.co.uk/1/hi/business/8467305.stm


Not long now for base rate rises, and mortgages to rise, next month it'll be much higher, because it'll take into account the vat rise.

UK inflation rose at its fastest annual pace for nine months in December.

The Office for National Statistics said Consumer Price Index (CPI) inflation rose 0.6% last month, with the annual rate up to 2.9% from 1.9% in November.

That was the biggest monthly rise in the annual index since records began and exceeded the City's expectations for an increase to 2.6%.

 

[DreXeL]

And we've just had a 5% pay cut at work. Great.

 

[Nick1881]

Does this mean even higher petrol prices on the way? 112.9 per litre is already way too high.

 

[britboy4321]

Hope it doesn't reach 15% like it has in the past That'd make my mortgage quite difficult to pay ..

 

[scorza]

Though it's certainly not good news, there's no need to press the panic button just yet. If people will care to remember, last December VAT was cut to 15% and the price of a barrel of oil had fallen to around $40 a barrel. Due to no equivalent drop in VAT one year later, and oil price increases throughout the year it's natural that inflation is higher. The BoE will factor that in before deciding on interest rates.

 

[The Mad Rapper]

And we've just had a 5% pay cut at work. Great.

No pay rise at all for me at work this year, or anyone else in our company

 

[Greebo]

Also last Christmas retail sales were appauling and there were lots of pre Christmas sales and price cuts.

So don't panic yet.

 

[The Mad Rapper]

Hope it doesn't reach 15% like it has in the past That'd make my mortgage quite difficult to pay ..

For you and a lot of other people. That said, perhaps such rates would force a return to prudence and a firm grasp of our finances. There does need to be an end to the cycle of cheap credit.

 

[scorza]

For you and a lot of other people. That said, perhaps such rates would force a return to prudence and a firm grasp of our finances. There does need to be an end to the cycle of cheap credit.

Really? Last time all it did was result in massive queue's outside banks and building societies.

 

[platypus]

Does this mean even higher petrol prices on the way? 112.9 per litre is already way too high.

I remember reading an article (can't find it at present) that said petrol would be up on average 15p by April.

 

[Cosimo]

I hope that this isn’t the beginning of an upward spiral.

 

[Nick1881]

I remember reading an article (can't find it at present) that said petrol would be up on average 15p by April.

What?

Maybe I should rethink my plans of buying a 330i

 

[Vonhelmet]

For you and a lot of other people. That said, perhaps such rates would force a return to prudence and a firm grasp of our finances.

Hahahaha!

Go on, tell me another one!

As if the plebs are going to give up their 80 inch TVs and Sky subscriptions.

 

[mattheman]

Hahahaha!

Go on, tell me another one!

As if the plebs are going to give up their 80 inch TVs and Sky subscriptions.

they would if they cant afford it.

 

[Vonhelmet]

they would if they cant afford it.

I'll believe that when I see it. I'd guess that people wouldn't give it up until things started getting repossessed.

 

[Jonny69]

That's a bit annoying, been slayed on my savings for ages and was hoping to get a mortgage this year

 

[Dr House]

What?

Maybe I should rethink my plans of buying a 330i

yes you really should!

A 335i would be much better!

 

[Amp34]

I think i'm one of the few that is hoping for oil price rises. The higher the price the more likely I am to get a job... As long as the world stays out of recession.

 

[aardvark]

and this doesn't even include the vat rise so it will be closer to 4% next month.

 

[mollymoo]

Looks like fixing our mortgage rate will pay off after all