Inflation over 5% and rising

[AtW]

When interest rates go up, many of the million mortgage-holders who are already stretched to the limit will, er, snap? Burst? What's the word?

If they are stretched with 0.5% BoE rates then they deserve to go bust.

HTH

[ChimpMaster]

High inflation is a desirable factor in today's economy.

Well, for me anyway.

[riiiiiich]

That's the problem. Property prices have been so low (caused in the South East by a chronic undersupply of property - well done various governments, you were supposed to fix this to prevent a bubble, but you did f**k all and profiteered off the situation) so now we have a situation where people have stretched themselves at interest rates that are stupidly low, and unsustainable. Don't get me started on Brown and his "economic miracle" which was nice at the time (well, for some) and then spectacularly went wrong. The truth is, the banking sector need to be protected from themselves and they sad idly by and did nothing.

[Doggy Styles]

If they are stretched with 0.5% BoE rates then they deserve to go bust.

HTH

This is what worries me. Well not me personally, but it will be bad news for everyone even if only a few hundred thousand people get repossessed.

Probably inevitable though.

[TykeMerc]

Quite right.

Just imagine how they'd feel if it was 15% again.

Very true, even more so when you consider how massive many peoples mortgages are compared to the last time the rates were that large.
The housing price bubble aftermath could be ugly if the rates go up only a few whole percent points.

[hyperD]

Inflation is natures way of telling you that some See You Next Tuesday had started printing money again.

Soon currency will be in denominations of turnips, sawn-offs and barbed wire.

[alreadypacked]

5%? is that all?

Seems a lot worse to me than that. Food has shot up, Petrol is now becoming a joke - £80 to fill up a tank?! VAT on it's own is like a bomb shell.

I think they removed some items from the inflation figures, because they made the number too high. Can't remember what they were, but I think interest was one.

You can't believe any number the government give out, it is just spin.

HTH

[hyperD]

I think they removed some items from the inflation figures, because they made the number too high. Can't remember what they were, but I think interest was one.

You can't believe any number the government give out, it is just spin.

HTH

Agreed alreadypacked. But you could have left it at:

You can't believe any government

[AtW]

I think they removed some items from the inflation figures, because they made the number too high.

Yes.

They removed optional luxuries such as: food, fuel, rent/mortgage etc.

[amcdonald]

So thats just porn left that adds to inflation