UK NEWS
INFLATION 'PEAKS' AT RECORD 5.2%
Inflation is now 3.2 per cent above the Government's target for stability
By Geoff Marsh for express.co.uk
INFLATION soared to a new record in September on the back of hikes in gas and electricity prices - but prices are soon likely to fall again as the country enters recession, experts claimed today.
The Consumer Prices Index (CPI) reached 5.2 per cent last month - the highest CPI reading since 1997 and a 16-year historical inflation peak.
But the CPI figures are likely to mark a peak as policymakers on the Bank of England’s Monetary Policy Committee (MPC) - who cut rates by 0.5 per cent last week - turn their attention towards avoiding a severe recession following the world financial turmoil.
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Soaring inflation has raised a few eyebrows at the Treasury
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Following the price hikes for gas and electricity - and an earlier round of increases in January - electricity prices are up 30.3 per cent year on year, with gas costs up almost 50 per cent.
The annual rate of inflation for energy and other household bills reached 15 per cent - the highest since 1989, while price rises for clothing, footwear, toys and games added to the pressure.
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The real challenge is now recession, not inflation.
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TUC general secretary Brendan Barber
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But there was some better news as food inflation slowed for the first time since March, largely due to unchanged milk prices last month compared with a 4p rise a year earlier. Meat prices however continued to rise, with bacon almost 20 per cent dearer than a year earlier.
As crude oil prices fall, the average price of petrol also fell by an average 1.7p a litre between August and September, compared with a smaller decline a year earlier.
Tony Woodley, joint general secretary of Unite said: “Much of the blame for this latest jump in the cost of living sits firmly at the door of the greedy energy companies. At the end of the summer consumers were knocked sideways by ransom demand fuel bills dropping through their letter boxes.
“It is simply not right that fuel companies are sitting on soaraway profits while households wrestle with a desperate choice of whether to heat or eat. Energy windfall profits should be redirected to give six million homes an immediate £250 each this winter to pay for essentials like heating. The oil and energy companies would not even notice it was missing.
“But we also need action now to address the poverty pay of millions of workers in this country, including public sector workers who are facing a wage cut this year. Putting some money in their pockets, in the form of a living wage rise, would benefit the entire economy and ease the burden for those who strive to keep our schools, hospitals and essential services running.”
TUC general secretary Brendan Barber said: “Today’s inflation figures will surprise no-one but this could well be their peak, with oil prices falling and no real domestic inflationary pressure.
“The real challenge is now recession, not inflation.
“Last week’s interest rate cuts were a welcome start, but we still need aggressive cuts in interest rates to underpin the Government”s financial package.”
THEY KNEW IT WAS THIS HIGH AT LEAST A YEAR AGO BUT THEIR REGULATOR WOULDN'T TELL US THIS!
14.10.08, 11:00pm
Lying bas..... they created this mess since they have been in power and beyong onto our children and they really think we will forgive them....I think not...we should speculate their parties demise at the next general election....everyone knows that we need to get rid of the old regime which did not protect each and every one of us but instead increased the burden on our familes and everyone of us!
Thiis whole debacle is just the starting point of catastrophe in our economy don't listen to the propoganda and verbal diiarrhoea pouring out from the cabinet and this pathetic man who stole his title from all of us! Take heed you scoundrels...we're on to you and won't forget!
• Posted by: RealIstic08 • Report Comment
THEY KNEW IT WAS THIS HIGH AT LEAST A YEAR AGO BUT THEIR REGULATOR WOULDN'T TELL US THIS!
14.10.08, 11:00pm
Lying bas..... they created this mess since they have been in power and beyong onto our children and they really think we will forgive them....I think not...we should speculate their parties demise at the next general election....everyone knows that we need to get rid of the old regime which did not protect each and every one of us but instead increased the burden on our familes and everyone of us!
Thiis whole debacle is just the starting point of catastrophe in our economy don't listen to the propoganda and verbal diiarrhoea pouring out from the cabinet and this pathetic man who stole his title from all of us! Take heed you scoundrels...we're on to you and won't forget!
• Posted by: RealIstic08 • Report Comment
LABGOUR'S OBJECTIVES
14.10.08, 5:49pm
Labour's objectives seem very confused.
On the one hand, they say there is an asset price bubble (houses) which needs correcting. On the other hand, they tell the recapitalised banks to lend at previous high levels so that the asset price bubble does not get corrected.
If you are ever confused by Labour policies, there is one consistent theme and only one - buying votes.
Unfortunately, buying votes and providing sound government rarely go hand in hand.
• Posted by: MichaelC • Report Comment
TELL US THEN WOODLEY...
14.10.08, 5:10pm
exactly what is this Government (that you so lovingly support ) doing about these greedy energy companies? yes, I thought so, NOTHING!
• Posted by: JohnThomas • Report Comment
I DO NOT UNDERSTAND INFLATION AT 5.2%
14.10.08, 4:41pm
Why is there no out cry at this lastest rise in inflation or is it just another spin.Even if if falls next month we will still be paying very high gas electric. and council taxs.And you can bet your last penny that council tax will rise yet again next year to pay for all of this mess.
• Posted by: retiredmale • Report Comment
I'D WORRY
14.10.08, 4:38pm
Tony Woodley, the grim reaper.
It strikes me he turns up somewhere just
before it gets rationalised or closed down.
• Posted by: idiot • Report Comment
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