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| 425 Chaotic Requisition |
 Posted: Mon Feb 18, 2008 9:21 am Post subject: When will UK inflation slow? |
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The Doctor
Joined: 18 Jun 2007
Posts: 3320
Location: England, UK.
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I heard a speech in the house of parliment not long ago by Gordon Brown about the wages of the police force and their demands. If I remember correctly he was not giving a rise to what they demanded, apparently to 'control inflation'. Yet recently energy bills have gone up, interest rates have gone up, and even the government has failed to reach its target of controlled inflation for February. Wages have gone up (not by much either). My cash inflow/outflow buying the same items and services has changed in favour of the outflow-I am thus at a loss. How long will it be before I cannot afford to live? The government must control inflation because it does not look like slowing down anytime soon. How long will it take to slow it down, or will it ever be slowed down?
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"Victory is in trying. Defeat is in not". - SVRDW. |
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| jackson33 |
| Posted: Mon Feb 18, 2008 9:55 am Post subject: |
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Forum Professor
Joined: 10 Oct 2006
Posts: 1281
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The annual inflation rate in the UK, fluctuated between 2.2 and 4% in 2007, which was below that of the EU Rates (ave 3.2%). You also include fuels in the index which accounts for much of this increase. Oil, natural gas and all the products using them or ship by them have to have gone up some.
Price increases or inflation is a result of to much demand for to few products and/or services. Not having ever been in the UK, I have no idea what drives prices, but US, Mexican, China, Japanese and many other places should be falling, as the value of the pound has increased from 1.40 per US$ to over 2.00 per...
Unless oil takes a dramatic drop, say below 15 UK pounds per ($30 US$), or you and the international economies go into recession, I don't think stagnation/deflation will happen. That is seen to be far worse for the average person or an economy. 2-4% inflation is not that bad however... |
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