Oncoming obtenebration II...

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The news in the UK that inflation rates stayed at zero [££Times and/or handy Economist graph HERE on what's what] (missing deflation but headed there anyway?) currently paints a rosy picture for the UK consumer, will the phrase "The economy, stupid" hold true for the coming UK General Election in May?



Across the water however, some very worrying figures emerged:

"...in a world in which the only economic growth comes as a result of new credit entering the economy (as opposed to Fed reserves being stuck in the S&P), the only thing that matters is how easy it is to get credit into the hands of those who need it. As it turns out it has never been more difficult to get credit... "And without any new credit entering the economy, a recession is all but assured."

Time will tell...

Oncoming obtenebration II...

---

The news in the UK that inflation rates stayed at zero [££Times and/or handy Economist graph HERE on what's what] (missing deflation but headed there anyway?) currently paints a rosy picture for the UK consumer, will the phrase "The economy, stupid" hold true for the coming UK General Election in May?

Across the water however, some very worrying figures emerged:

"...in a world in which the only economic growth comes as a result of new credit entering the economy (as opposed to Fed reserves being stuck in the S&P), the only thing that matters is how easy it is to get credit into the hands of those who need it. As it turns out it has never been more difficult to get credit... "And without any new credit entering the economy, a recession is all but assured."

Time will tell...

OPEC or Osborne...

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"What cost of living crisis? CPI inflation falls to zero for first time on record" writes Nelson Fraser in The Spectator. Indeed but not for the first time ever apparently but certainly the first time since the Consumer Prices Index was created in 1989 (click to enlarge image). More good news in the article by Fraser for those suggesting 'deflation' could be a problem.



Of course CPI doesn't include all household expenses; that would be the Retail Prices Index (RPI) which includes mortgage and rent (and Council Tax); these would be most people's highest outgoings but even this Index hovers just over the 1% mark. One commenter asks who is responsible, oil price fall or the Chancellor...

OPEC or Osborne...

---

"What cost of living crisis? CPI inflation falls to zero for first time on record" writes Nelson Fraser in The Spectator. Indeed but not for the first time ever apparently but certainly the first time since the Consumer Prices Index was created in 1989 (click to enlarge image). More good news in the article by Fraser for those suggesting 'deflation' could be a problem.

Of course CPI doesn't include all household expenses; that would be the Retail Prices Index (RPI) which includes mortgage and rent (and Council Tax); these would be most people's highest outgoings but even this Index hovers just over the 1% mark. One commenter asks who is responsible, oil price fall or the Chancellor...