Out Today, Proof that Inflation is what we should really be worrying about, not deflation as the government and the so called experts are saying.
Information on CPI says this on the National Statistics web site
“A large upward pressure affecting the change in the CPI annual rate contribution came from transport costs due to purchase of vehicles, fuels and lubricants, and air transport. Car prices rose this year but were little changed a year ago, principally due to the price of second-hand cars. The price of fuels and lubricants rose by more than a year ago. The average price of petrol rose by 4.0 pence per litre between March and April this year, to stand at 94.4 pence, compared with a rise of 1.9 pence last year. This year’s price rise incorporates an increase in excise duty which took effect from 1 April.”
There was a further large upward pressure from communication, principally telephone equipment and services. Landline telephone charges rose by more than a year ago and the price of mobile phone handsets rose this year but fell a year ago.
Food Price inflation over the 12 months was 8.5%, and petrol has again increased since the figures were collected. In the figures the average Perol price is 94.4p/l I have not seen anything less than 97p/l in the last 2-3 weeks, with diesel now back over a pound a litre.
Remember, if inflation takes off, interest rates will have to rise, if rates rise there will be more defaults on mortages