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  • Consumer price inflation, UK: August 2023

    From ons.gov.uk

    The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 6.3% in the 12 months to August 2023, down from 6.4% in July. On a monthly basis, CPIH rose by 0.4% in August 2023, compared with a rise of 0.5% in August 2022. The Consumer Prices Index (CPI) rose by 6.7% in the 12 months to August 2023, down from 6.8% in July. On a monthly basis, CPI rose by 0.3% in August 2023, compared with a rise of 0.5% in August 2022. The largest downward contributions to the monthly change in both CPIH and CPI annual rates came from food, where prices rose by less in August 2023 than a year ago, and ... (full story)

  • #1
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  • Sep 20, 2023 2:08am Sep 20, 2023 2:08am
  •  Trader#E552
  • | Status: Unregistered Trader
Fantastic price action. Never GBP had such a swift move.
  • #2
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  • Sep 20, 2023 2:10am Sep 20, 2023 2:10am
Do we still expect 0.25 bps hike in rates?
  • #3
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  • Sep 20, 2023 2:24am Sep 20, 2023 2:24am
Huge drop in inflation for GBP, still nowhere near US or EU as it's still the highest, but food prices are falling which is good, lets see what happens next month if the inflation stabilises, but that gives BOE a chance to pause
  • #4
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  • Sep 20, 2023 2:26am Sep 20, 2023 2:26am
Individually: People are trimming back on recreational and leisure activities, a scaling back of large ticket items and a brace for soaring energy costs.

Economically: Strikes are hitting multiple sectors, cost of energy is about to soar, with no contingencies in place, and the same for adverse weather... only this time your local authority is near bankrupt.

Politically: Policy is no better than it was with Truss, with one leader asking to get to Net Zero, whereas renewables in the UK are scorned, and a second leader saying reducing inflation is the target; and the Premier pursuing pocket lining policies only.

"NET Zero" is about your income, not your quality of air
Break the cake
  • #5
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  • Sep 20, 2023 2:28am Sep 20, 2023 2:28am
  •  Trader#7A1A
  • | Status: Unregistered Trader
Gu won’t make it easy for you lol with all the fundamental don’t forget we are currently trading on key level support region . Let’s see what fomc does tonight . Trade safe guys
  • #6
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  • Sep 20, 2023 3:06am Sep 20, 2023 3:06am
They say inflation is less in August than it was a year ago. I say go and get your fuel this morning and groceries because it sure as sh!t doesn't seem cheaper to me. Usual number fudging and fix ups from this bungling lot in power.
  • #7
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  • Sep 20, 2023 3:11am Sep 20, 2023 3:11am
Quoting swd
They say inflation is less in August than it was a year ago. I say go and get your fuel this morning and groceries because it sure as sh!t doesn't seem cheaper to me. Usual number fudging and fix ups from this bungling lot in power.
Unfortunately real life vs trading = never align, it's algorithms and banks that control the market overall and they trade 12 - 18 months ahead, for them all they will see is trend down in inflation and will slowly reposition themselves for 2024.
  • #8
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  • Sep 20, 2023 3:12am Sep 20, 2023 3:12am
Quoting swd
They say inflation is less in August than it was a year ago. I say go and get your fuel this morning and groceries because it sure as sh!t doesn't seem cheaper to me. Usual number fudging and fix ups from this bungling lot in power.
Always capable of asking the dumb question: you do know that a reduced inflation rate doesn't mean prices are reducing but that the rate of increase of prices is reducing, don't you?
  • #9
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  • Sep 20, 2023 3:24am Sep 20, 2023 3:24am
Quoting DaJoWaBa
{quote} Always capable of asking the dumb question: you do know that a reduced inflation rate doesn't mean prices are reducing but that the rate of increase of prices is reducing, don't you?
Dumb. Hmm. Yes oddly I DO know that as any simpleton on here would do with even the simplest of google searches. Was talking more about the "feel" of inflation not it's definition. But hey why bother posting on here at all. It''s a bit of a waste of time really.
  • #10
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  • Sep 20, 2023 3:25am Sep 20, 2023 3:25am
Quoting DaJoWaBa
{quote} Always capable of asking the dumb question: you do know that a reduced inflation rate doesn't mean prices are reducing but that the rate of increase of prices is reducing, don't you?
Well apart from my comment, I thought people knew this, it's common sense haha! I take the internet for granted sometimes
  • #11
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  • Sep 20, 2023 3:32am Sep 20, 2023 3:32am
Quoting MatTrader101
Huge drop in inflation for GBP, still nowhere near US or EU as it's still the highest, but food prices are falling which is good, lets see what happens next month if the inflation stabilises, but that gives BOE a chance to pause
Unfortunately, inflation is NOWHERE being done yet it seems. Even in US inflation started to have legs again and I'm afraid we are just witnessing the beginning of another move up. Price of oil is skyrocketing and with oil, pretty much the rest will go up too. It's a chain reaction.

As an individual, you'll have to become honest with yourself that higher rates will lead to disaster in the future. You'll have to prepare for that! Inflation is to stay with us much longer than people think. Also, IR will have to go higher. I thought 7% was crazy 6 months ago, but now I see it's not that crazy after all.
  • #12
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  • Sep 20, 2023 3:36am Sep 20, 2023 3:36am
  •  Trader#A6A9
  • | Status: Unregistered Trader
As Lagarde had mentioned way back, EU (here I include UK - similar problem) has demand issue for inflation while US has supply issue for inflation. Thats why EU has reduced inflation by raising rates (thereby controlling demand) while US is still struggling.
In US, Liquidity was high (due to Covid - less spending) and then cash provided as Covid relief. Inflation shot up as expected. Now credit spending has hit the roof. FED has been barking up the wrong tree. Let's see what Powell comes up with today.
  • #13
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  • Sep 20, 2023 3:44am Sep 20, 2023 3:44am
Quoting TheWraith
{quote} Unfortunately, inflation is NOWHERE being done yet it seems. Even in US inflation started to have legs again and I'm afraid we are just witnessing the beginning of another move up. Price of oil is skyrocketing and with oil, pretty much the rest will go up too. It's a chain reaction. As an individual, you'll have to become honest with yourself that higher rates will lead to disaster in the future. You'll have to prepare for that! Inflation is to stay with us much longer than people think. Also, IR will have to go higher. I thought 7% was...
Until governments stop increasing the money supply which is causing the inflation, the inflation won't go away. The US, UK, etc are all struggling to fund the Russia Ukraine war and cope with post Covid. Look at the US set to double its deficit this year. Instead of increasing taxes or cutting spending the FED blames consumers, jacks up interest rates and you have our current situation. The unknown is who will perform worse. This is where a potential opportunity lies.
  • #14
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  • Sep 20, 2023 3:47am Sep 20, 2023 3:47am
Quoting dantpm
{quote} Until governments stop increasing the money supply which is causing the inflation, the inflation won't go away. The US, UK, etc are all struggling to fund the Russia Ukraine war and cope with post Covid. Look at the US set to double its deficit this year. Instead of increasing taxes or cutting spending the FED blames consumers, jacks up interest rates and you have our current situation. The unknown is who will perform worse. This is where a potential opportunity lies.
Yeah. What you just said explains everything pretty much. War is more important for these morons than their own citizens. Bunch of clowns...
  • #15
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  • Sep 20, 2023 4:23am Sep 20, 2023 4:23am
Quoting swd
{quote} Dumb. Hmm. Yes oddly I DO know that as any simpleton on here would do with even the simplest of google searches. Was talking more about the "feel" of inflation not it's definition. But hey why bother posting on here at all. It''s a bit of a waste of time really.
Having had a past career of troubleshooting businesses, it's always amazing how people never ask the simplest, "dumbest", questions as no one is ever brave enough to do so. It doesn't mean the person asking the "dumb" question is actually dumb but in fact, more often than not, they're the smartest in the room as they then get to the root of the issues much more quickly.
It was the fact that you used the words "doesn't seem cheaper" that implied you misunderstood RoI. So, I'm glad it's cleared up now: you can never use the word "cheaper" with any +ve RoI.
As for the rest of the grumble about posting on here, I have no idea where you're going with that.
  • #16
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  • Sep 20, 2023 4:35am Sep 20, 2023 4:35am
Quoting dantpm
{quote} Until governments stop increasing the money supply which is causing the inflation, the inflation won't go away. The US, UK, etc are all struggling to fund the Russia Ukraine war and cope with post Covid. Look at the US set to double its deficit this year. Instead of increasing taxes or cutting spending the FED blames consumers, jacks up interest rates and you have our current situation. The unknown is who will perform worse. This is where a potential opportunity lies.
Agreed, I think Japan/Korea will bounce back the best as they are not funding the Ukrainians and not printing nowhere near as much money as EU or US.

Ukraine is just a massive laundrette for money that needs to be recirculated from evading taxations from the rich nothing more.
  • #17
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  • Sep 20, 2023 4:44am Sep 20, 2023 4:44am
Quoting DaJoWaBa
{quote} Having had a past career of troubleshooting businesses, it's always amazing how people never ask the simplest, "dumbest", questions as no one is ever brave enough to do so. It doesn't mean the person asking the "dumb" question is actually dumb but in fact, more often than not, they're the smartest in the room as they then get to the root of the issues much more quickly. It was the fact that you used the words "doesn't seem cheaper" that implied you misunderstood RoI. So, I'm glad it's cleared up now: you can...
Oh dear.
  • #18
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  • Sep 21, 2023 2:19am Sep 21, 2023 2:19am
What if inflation was to fall to 5.36% at the very last day of green Sunak's "promise" of halving inflation at 5.35% by end of 2023 - would it deem he failed or a success?

While green sunak turned a lighter shade of green yesterday in his U-turn to diesel, petrol cars, gas boilers delayed till 2035. Why did no one ask a dumb question, one of the best solution to climate change is to grow more trees???? The rate of humans cutting down trees over growing them is still exponentially high!!
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  •  Trader#A322
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  • Posted: Sep 20, 2023 2:03am
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 18  /  Views: 8,306
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