Inflation on target..

[L00b]

I'm just taking this news as a further bit of foundation-laying in the ongoing maskirovska for justifying base rate rises later this year. Same with the near-7% unemployment rate etc.

 

Smoke and mirrors, as the feel I get at street level is still significantly less optimistic than these stats suggest should be the case (well...at least up here, not in LaLaLand-on-Thames, which these days seems to exist in complete socio-economic isolation to the rest of the country, more so than ever).

[999tigger]

Of greater concern is that the recovery is based on concumer spending and a large part of that is concerned with the housing boom in the south east. It would be nice if one day we had an export led recovery.

[Qualtrough]

Inflation down to 2%

 

http://www.bbc.co.uk/news/business-25726621

 

With the inflation rate falling to a managable level and growth turning upwards more, it looks like we are well on track for a decent sustained recovery.

 

I can of course just hear the howls of derision from the usual suspects, but I notice they were very quiet about this good news, noticed that they totally ignored the uncomfortable cold weather thread....

 

Funny that. Almost like they don't want good news.

 

I think you're right, although I'd like to see Miliband as PM because he is honest and principled, I think the balance sheets will win it. We are exactly where we were 20 years ago. In first gear after a big recession. The gears will go up every year and by the end of the decade we'll be in prosperity again. Just in time for another bubble to burst. Until we copy Germany this every British PM will be Sisyphus.

[Mecky]

I'm just taking this news as a further bit of foundation-laying in the ongoing maskirovska for justifying base rate rises later this year. Same with the near-7% unemployment rate etc.

 

Smoke and mirrors, as the feel I get at street level is still significantly less optimistic than these stats suggest should be the case (well...at least up here, not in LaLaLand-on-Thames, which these days seems to exist in complete socio-economic isolation to the rest of the country, more so than ever).

 

I don't see people better off at the moment, in fact it seems to be worse than a year ago in terms of people putting food on the table. Perhaps there as been a slight increase in orders for some businesses but maybe not for others. Even if there is, there is little evidence to suggest businesses are taking on people which we'd all like to see as enemployment seems to be fluctuating. I think businesses would prefer to employ one person where three are needed, provided the work can be done at slightly lower than an acceptable capacity. And as I said early, stuff like food, household fuels, rents etc are rising well above the rate of inflation.

[Cyclone]

If one person can do the work at slightly below the required capacity, then only 1.2 people (or around that number) are required, not 3.

[L00b]

<...> Even if there is, there is little evidence to suggest businesses are taking on people which we'd all like to see as enemployment seems to be fluctuating. I think businesses would prefer to employ one person where three are needed, provided the work can be done at slightly lower than an acceptable capacity.

That is not our evidence at the coalface.

 

We are Sheffield-based and have been recruiting a fair bit this year (secretaries, office management, trainees), and have been having -at times- some serious problems finding suitable/relevant candidates.

 

We'd gladly have too much support staff than not enough: as business/organisations go, some excess capacity 'in the model' is a damn sight cheaper to us than chronically not enough.

 

The problem is absolutely not what's on offer: we pay the best rates going for the area (so I'm told by agencies), but then that's because we do need, and want, the best...and there seems to be precious little of that around atm (but no shortage of significantly self-entitled applicants who consider themselves as such, unfortunately - until they find out they're not, really, the hard way).

[Obelix]

I don't see people better off at the moment, in fact it seems to be worse than a year ago in terms of people putting food on the table. Perhaps there as been a slight increase in orders for some businesses but maybe not for others. Even if there is, there is little evidence to suggest businesses are taking on people which we'd all like to see as enemployment seems to be fluctuating. I think businesses would prefer to employ one person where three are needed, provided the work can be done at slightly lower than an acceptable capacity. And as I said early, stuff like food, household fuels, rents etc are rising well above the rate of inflation.

 

Your sources for all this? Please don't say the ONS or any other group like that as you've said you don't trust them.

 

---------- Post added 14-01-2014 at 13:26 ----------

 

I'm just taking this news as a further bit of foundation-laying in the ongoing maskirovska for justifying base rate rises later this year. Same with the near-7% unemployment rate etc.

 

Smoke and mirrors, as the feel I get at street level is still significantly less optimistic than these stats suggest should be the case (well...at least up here, not in LaLaLand-on-Thames, which these days seems to exist in complete socio-economic isolation to the rest of the country, more so than ever).

 

Regional base rates hmmm. Would be an interesting thing to try although I'm not sure how you could make it work. One way of persuading business out of London to the regions (but then they'd all go to Leeds and there would be more wailing on here..)

[Supertramp]

That is not our evidence at the coalface.

 

We are Sheffield-based and have been recruiting a fair bit this year (secretaries, office management, trainees), and have been having -at times- some serious problems finding suitable/relevant candidates.

 

We'd gladly have too much support staff than not enough: as business/organisations go, some excess capacity 'in the model' is a damn sight cheaper to us than chronically not enough.

 

The problem is absolutely not what's on offer: we pay the best rates going for the area (so I'm told by agencies), but then that's because we do need, and want, the best...and there seems to be precious little of that around atm (but no shortage of significantly self-entitled applicants who consider themselves as such, unfortunately - until they find out they're not, really, the hard way).

 

Same here, Sheffield based and we had a workforce of 83 staff plus 8 contractors. In December we have gone up to 91 staff and 10 contractors with 2 more FT staff starting in Feb. Looking to replace the contractors with permies too but can't find the correct skillsets.

[Jason Bourne]

So what does that mean to the average man on the street?

 

I'm sure most of us have noticed that the cost of living has been higher than 2% for the last few years

 

Indeed, but with inflation falling to current levels that should no longer be the case.

 

I am sorry, but I do not share your enthusiasm at all. A lower inflation rate will not mean a slowdown in the cost of living, unless manufacturers are forced not to raise their prices beyond the level of inflation.

 

I refer you to this thread dating back to mid-2011, including examples where manufacturers where raising their prices far beyond the level of inflation:

 

Is the current economic climate as an excuse to rip us off?

 

I hope I'm wrong, but I don't think the average man in the street will see much improvement from a slightly lower inflation rate.

 

The only people I expect to benefit from the news are the government, who will feel vindicated that their punishment of poor people is slowly beginning to bear fruit.

[Obelix]

I am sorry, but I do not share your enthusiasm at all. A lower inflation rate will not mean a slowdown in the cost of living, unless manufacturers are forced not to raise their prices beyond the level of inflation.

 

I refer you to this thread dating back to mid-2011, including examples where manufacturers where raising their prices far beyond the level of inflation:

 

Is the current economic climate as an excuse to rip us off?

 

I hope I'm wrong, but I don't think the average man in the street will see much improvement from a slightly lower inflation rate.

 

The only people I expect to benefit from the news are the government, who will feel vindicated that their punishment of poor people is slowly beginning to bear fruit.

 

The inflation rate is the measure of prices - by definition you cannot rise prices over the inflation rate because that is the inflation rate...