Letter to the Chancellor...

Matt the Shrimp · Apr 17, 2007

Oops, looks like Mervyn has had to write to Gordon to explain why inflation this month is at 3.1%...

clicky (pdf)

Two thoughts:

1. Interest rates will be up again next month - watch out all those on anything other than fixed rate mortgages.

2. This paragraph leapt out:

Why did CPI inflation exceed 3% in March when it was 2.8% in February? Since February sterling oil prices have risen by around 25%, reversing part of the fall in prices seen in the second half of last year. Higher petrol prices contributed significantly to the pick up of inflation in March. Some of the falls in food prices a year ago, especially of milk, were not repeated in March this year. And the prices of furniture and fittings rose by almost 10% in March – a record rise – as retailers put up prices, according to the Office for National Statistics, “in the lead up to Easter special offers”. Some of these factors may turn out to be temporary – though that remains to be seen.

That gives rise to two further questions:

(i) If there's been a 25% rise in sterling oil prices, what on earth is happening to the dollar price per barrel (surely the more important stat)?

(ii) Furniture companies... cheeky bloody b@stards!

:flamer:

osymandus · Apr 17, 2007

Matt the Shrimp said:
Oops, looks like Mervyn has had to write to Gordon to explain why inflation this month is at 3.1%...

clicky (pdf)

Two thoughts:

1. Interest rates will be up again next month - watch out all those on anything other than fixed rate mortgages.

2. This paragraph leapt out:

Why did CPI inflation exceed 3% in March when it was 2.8% in February? Since February sterling oil prices have risen by around 25%, reversing part of the fall in prices seen in the second half of last year. Higher petrol prices contributed significantly to the pick up of inflation in March. Some of the falls in food prices a year ago, especially of milk, were not repeated in March this year. And the prices of furniture and fittings rose by almost 10% in March – a record rise – as retailers put up prices, according to the Office for National Statistics, “in the lead up to Easter special offers”. Some of these factors may turn out to be temporary – though that remains to be seen.

That gives rise to two further questions:

(i) If there's been a 25% rise in sterling oil prices, what on earth is happening to the dollar price per barrel (surely the more important stat)?

(ii) Furniture companies... cheeky bloody b@stards!

:flamer:

1. Oils needs to sell in Euros (he he)
2. Funnily enough due to wood furniture or based (which im sure 90% is or contains), lack of resources . Korean firms are good for this or manufactures they use reused wood in most of their products.