'Basic food price rise higher than inflation rate'

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  • Consumer Confidence Unexpectedly Drops On Inflation, Rate-Hike Fears UMich consumer sentiment declined from 100.7 to 97.8 in the preliminary November print, disappointing expectations of a small rise as anticipation of a pickup in inflation and higher interest rates weighed on the gauge. Even with the decline, sentiment was the second-highest since January, reinforcing other reports that Americans remain optimistic about employment and the economy. Other… View On WordPress
  • Financial markets are forward-looking. At least that’s what business school professors teach us.They believe traders look at the future and decide how much a stock will be worth in 10 years. The current price is based on that future price.You might be shaking your head in disbelief. But that’s what Wall Street analysts do.They create spreadsheets to forecast the future. Then they make assumptions about interest rates, and the spreadsheets tell them what to pay for a stock.It sounds scientific, but it’s not. The whole process depends on the chart below.(Source: Federal Reserve)This is a chart of what investors believe inflation will average over the next 10 years. It’s based on what the current interest rates are.It’s always close to the current rate of inflation. In other words, investors believe inflation will stay about the same.That’s a surprisingly accurate assumption. Inflation generally does stay within a narrow range.But when it unexpectedly jumps, like it did in 1968, the stock and bond markets fall.The Federal Reserve calls this important metric “inflation expectations.” It understands that if expectations are stable, markets are fine.But if inflation jumps, expectations will jump. The Fed’s goal is to manage expectations.When inflation jumped in 1968, expectations stayed high for more than 20 years. Stocks suffered four distinct bear markets from the next 15 years. A bear market in this case is a decline of at least 20% in the S&P 500.If inflation and inflation expectations jump, that will happen again.Investors will see volatility and declines more often. Consumers will suffer as prices rise at stores. Overall, it will simply be terrible.And it’s likely to happen within the next few years.Regards,Michael Carr, CMTEditor, Peak Velocity Trader
  • Credit Agricole CIB FX Strategy Research discusses its outlook for the FX market next week, noticing that the thematic focus would be on the inflation data releases from the US, Canada, UK, and the Eurozone.  In the US, CACIB thinks that the USD may get little help from US inflation data given that CACIB doesn’t expect any acceleration in the core CPI reading.  In Canada, CACIB thinks that the CAD should be in a better position to benefit from any pick-up in inflation and maintains a short USD/CAD* position. In the UK, CACIB believes that the UK CPI could put the BoE’s view that inflation is close to peaking to test, arguing that it remains to be seen whether any evidence of a persistent inflation overshoot would help GBP on a re-pricing of the BoE’s rate outlook. Finally in the Eurozone, CACIB notes that the final HICP print may help investors to focus their attention on the likely positive impact from higher-than-expected oil prices and the weaker EUR TWI on the near-term inflation outlook. CACIB keep EUR longs against both USD* and CHF*.  Source: Credit Agricole CIB Research The article is published by one of the foremost sources of Forex trading information. Link to the original article above. from eFXNews
  • Inflation data implies margin pressure for businesses Inflation as measured by the Wholesale Price Index (WPI) surged to a...
  • The Bank of England has acted to increa. Getty Images The Bank of England has increased interest rates for the first time in more than 10 years. The quarter-point rise, from 0.25% to 0.5%, signals more increases are on the way as the Bank looks to cool surging inflation caused by Britain’s imminent exit from the EU. Almost four million households face higher mortgage interest payments after the rise. The main losers will be the 3.7 million households with a variable rate or tracker mortgages. They could see a rise of about £11 or £12 a month in their repayments, assuming an average outstanding balance of £89,000. Charlotte Nelson, finance expert at moneyfacts, said: “Competition in the mortgage market has remained high and borrowers have experienced some of the lowest rates on record. “However, the speculation prior to today’s base rate rise has been causing rates to slowly creep up since September and so today’s announcement may see an end to the lowest of deals.” Mark Carney says the rate rise is a ‘modest adjustment’ (Dylan Martinez | AFP | Getty Images) Policymakers on the bank’s nine-strong Monetary Policy Committee (MPC) voted 7-2 in favour, which marks the first rates increase since July 2007. The Bank’s quarterly inflation report also suggested two more rate hikes were likely over the next three years to return inflation back to its 2% target, which could see rates hit 1% by the end of 2020. The pound fell sharply against the dollar,  down 0.75% to $1.3145, and it also fell against the euro,  down 1.18% to €1.1264. The FTSE was up 39 points immediately after the announcement. Bank governor Mark Carney said that with inflation at 2.9% and unemployment at its lowest level for more than 40 years, it was the right time to raise rates. “It is a modest adjustment,” he said, adding that the degree of spare capacity in the economy was “very limited”. Although it is the first rate in a decade, the climb will only take rates back up to 0.5%, where they were before the last cut 18 months ago. But it could be just the beginning with many experts predicting it will just be a series of increases over the next year in an attempt to strengthen sterling ahead of Brexit and dampen inflation, which the Bank predicts will now peak at around 3.2% this autumn. How will a rate rise affect you? “Even a small increase in rates means that many families will have to tighten their belts to meet growing loan interest repayments, and do so with Christmas just around the corner,” warns Kate Smith, head of pensions at Aegon. For savers an increase is good news, as they’ll get better returns on their nest eggs. That’ll be particular pleasing to the 12.5 million UK pensioners living off their savings. MORE: This week’s deals and discounts to help you save money But for the 12 million millennials potentially saving for a deposit on a house, the rate rise is a double-edged sword, Kate Smith warns. “On the one hand they’ll earn more interest on their savings, but they’ll also see mortgage rates creep up, keeping a house purchase tantalisingly out of their grasp.” Mortgage rates Mortgages rates have been at record lows. Getty Images A 0.25% increase in rates will have a modest impact on the minority of borrowers who are on variable rates, according to Nationwide chief economist Robert Gardner. He reckons a rate rise will increase monthly payments by £15 to £665 for the average variable mortgage, or an extra £180 a year. People with fixed rate mortgages will be unaffected by the rise – for the moment at least. The Bank of England says about 2 million mortgage holders have never before experienced a rate rise, such have been the historic and lengthy lows. But should you be rushing to get a new fixed rate deal? No, says Mark Harris, chief executive of mortgage broker SPF Private Clients. “I’m not sure this is actually the end of the cheap mortgage deals,” he says. “While a number of lenders have increased rates slightly, Nationwide actually reduced its mortgage rates this week and the ultra-competitive lending market remains.” MORE: Dealing with debt: I was too poor to get out of debt He predicts that the increase is likely to be absorbed into lenders’ margins because they are still chasing business. “The plethora of new lenders on the market means there is plenty of competition for business and lots of choice for borrowers.” What about your stock market investments? If you invest in shares or funds, the outlook won’t be much different after a rate rise. “Rising interest rates turn the screw, but they will only happen if the economy is in good enough shape, which would be positive for company earnings,” says Laith Khalaf, senior analyst at Hargreaves Lansdown. “In the scenario of low productivity we face in the UK today, both economic growth and the pace of rate rises are likely to be sluggish.” However he reckons there could be some individual stocks which fare better than others, with the banking sector probably best positioned to take advantage of rising rates. What about savings? Nest eggs are still earning less than inflation. Getty Images There is likely to be little immediate impact on savings rates, although one or two banks or building societies may quickly announce increases in an attempt to get a competitive advantage. Even when the rate increase is passed on fully to savers, rates will still languish below inflation. “An interest rate rise is a hollow victory for cash savers because it still won’t deliver a level of interest that keeps up with price rises,” points out Mr Khalaf. “Tighter monetary policy will also take its time to filter through to cash savers because the banks will delay passing through higher rates to depositors for as long as possible.”
  • [14-11] "Falls in fuel prices were offset by higher food costs, in particular those for potato crisps". If inflation rate i…
  • [14-09] #MarkCarney #workingclass spit roasted by high inflation & low/no pay rise to suffer interest rate rise You've never had it (so good)
  • [28-10] #FMQs: @patrickharvie challenges FM to commit to “basic principle” of above inflation public service pay rise.
  • [27-10] @DanielJHannan @BettyBunny1969 #MarkCarney edgy over 3% inflation rate in #UK. Venezuelan rate of inflation this we…
  • [15-08] (CNBC) #UK inflation holds steady in #July as price pressures ease : British consumer price inflation..
  • [03-11] #BankofEngland dubious logic for rate rise to curb inflation when it's due to #Brexit£ drop and consumers already have no money.
  • [03-08] Real #Inflation in #UK is higher than Bank of England say! Low #InterestRates = Low £ = Higher Import Prices = Higher
  • [26-08] Retail sales cool amid continued higher inflation rate #Brexit #Retail #StopBrexit
  • [30-09] @DanielJHannan Higher food prices & inflation, lower pay & worse working conditions & human rights protections, irr…
  • [15-08] Rail commuters brace for highest price hike in 5 years as #UK inflation rises to 3.6% - and food …
  • [19-11] #BandQ mesh angle bead - shelf price today £1.75 - Till price £2.57 31% price INCREASE (inflation is 3%) #ripoffbritain #DIY
  • [16-11] House Price Inflation - what's the solution? #HousePrice #Inflation #Watford
  • [14-11] Grim #Brexit news from recent days (1/6): Food price inflation at 4-year high. #ThanksBrexiters
  • [16-11] Food price inflation (enhanced by the #brexit induced fall of £ ) rises to over 4%, while wages stagnate@InFactsOrghtt
  • [03-11] #Brexit effect:Pound collapses⬇️ Investment falls⬇️ Growth slump ⬇️ Inflation rise ⬇️ Interest rates rise:
  • [08-10] Since sovereign #debt counts towards those requirements, additional #liquidity fuelled asset price rather than goods price #inflation. 3
  • [18-11] Is this rise in #debt reflected in terms of new jobs, higher efficiency, better infrastructure, higher standards of living? #P
  • [04-08] As expected, no #UK rate rise, but economy slowly souring as #Brexit worries feed through. Tone of #BoE worsening. No rate ri
  • [02-11] 'Modest rate rise by #BoE seems a one-off muscle flex' - Neil Williams on today's #BankofEngland #interestrate rise ht
  • [08-11] Interest rate rise: Why hasn't my savings rate gone up yet?
  • [22-11] #budget2017 Tax allowance changes: my initial calcs - lower rate taxpayers save £70, higher rate save £270 on income ta
  • [20-11] Washington DC #USA - Food Service Manager 3 - ...nbspDegree Basic Management Experience - 2 years Basic Functional…
  • [10-10] #Inflation rate for September in #Moldova
  • [20-09] #BoE warns that #Brexit to bring a weaker #UKEconomy and higher inflation ??
  • [19-11] #BandQ mesh angle bead - shelf price today £1.75 - Till price £2.57 31% price INCREASE (inflation is 3%) #ripoffbritain #DIY
  • [16-11] House Price Inflation - what's the solution? #HousePrice #Inflation #Watford
'Basic food price rise higher than inflation rate'
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how does rise of china interest rate affect the inflation? I heard not long ago that because of inflation rising up in China, the China Bank will rise its interest rate of 0.25%. I am quite new to the financial world and do not really understand how this is ...
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If I buy a share from myself at a higher price, will that drive the price up so I can sell all my shares the higher price? Suppose I buy 100 shares of Apple at $200 and I want to increase the share price. If I sell 1 share at $210, and at the same time log in to buy the share at $210, will the share price increase to $210 ...
Why is a Vanguard fund based on U.S. treasury inflation-protected securities (TIPS) returning more than the rate of inflation? VIPSX says it has returns of >= 5% over 5 years and almost 9% in the last year. It appears to be based on U.S. inflation-protected securities. However, U.S. treasuries are returning near zero, and ...
Calculating composite rate from fixed rate and inflation rate for I-bonds For I-bonds: Composite rate = [Fixed rate + (2 x Semiannual inflation rate) + (Fixed rate x Semiannual inflation rate)] I wonder how to understand the above way of calculating the composite rate?...
Suppose a borrower and lender agree on the nominal interest rate to be paid on a loan and the inflation turns out to be higher than they expected Is the real interest rate on this loan higher?
If inflation rate increase what happen to bond's price? if Infalation rate increase bond price will fall.
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In normal cirucmstances is there a short run tradeoff between the rate of inflation and the rate of unemployment? Yes. Inflation causes businesses to have to cut costs, and labor is one of the easily cuttable costs. See the Phillips Curve.
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What is Australia's rate of inflation? Well according to the 2007 estimates (not sure who made these estimates) the Australian rate of inflation is 3%. The official CPI (Consumer Price Index) issued Quarterly from the 'Australian Bureau of Statistics' (/>
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Inflation Steady Despite Food Price Rises - The UKs key inflation rate remained steady at a five-and-a-half-year high of 3% in October, according to official figures.
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