Steady the CPI is, but Pandora’s box The Sith Lord Carney is throwing open...

At 0.6%, UK CPI held steady, lower than an “improved” 0.7% that the market was expecting. But, beyond this headline print you must look if the path of the economy you want to understand…

Important it is to note that at 7.6% YoY producer’s input prices are increasing…

A lot to do with the effect of the falling GBP this increase is, but dismissed as a transitory effect it should not be (For this phrase within the November BoE inflation report you must look. “Always and forever a temporary/transitory phenomenon inflation is” in the eyes of the central banksters). Soon, passed onto consumers it will be and a permanent dent in the hard hit consumer’s pockets it will make. Permanent, not transitory.

Many economists argue that the weak, post Brexit vote GBP, will be boost to UK exports as cheaper/more competitive it is making UK produced goods. A J-Curve they call this in economic text books, but little evidence there is that in the UK this exists. Staring the ivory tower dwelling economists in the face one of the key reasons for this is; Reliant on imports many UK exporters are, as the GBP falls their margins are squeezed and their export prices they must raise.

Raise their prices UK exporters must if on imports they rely to produce their goods, yessss

Along with CPI/PPI data today, the UK house price data the ONS released. At an annual rate most look at house price inflation, and at a reduced 8.3% YoY it has slowed to. How The Jedi sense house prices this is not. Hourly we prefer to read them, and at a £9.38/hr rate the average house is increasing in value in UK (assuming houses only work 9–5, 5 days per week, but with no holiday).

As a promising young padawan noted this morning:

If a home you own, especially in the south east + London, a tax rebate this house price inflation is. Ever lower interest rates carry this tax rebate to the wealthy and from the pockets of the renters it is taken. Parabolic levels of consumer debt and mortgage borrowing, local government NIMBY planning restrictions and an open door immigration policy of low skilled males from Eastern Europe and the Arab and African world fuel the fire.

Important note: With the falling GBP, cheaper UK housing is to the foreign cash buyers. For evidence of parking of foreign cash and the implications this has on the UK economy we will look out for in the coming months…

Witnessing here you are the largest transfer of wealth in history, from young to old, poor to rich. From the landless to the landed, disguised behind a manipulated CPI number designed to distort the true picture of an economy. Transitioning relentlessly towards Neofeudalism Great Britain is.

There’ll be no one to stop Neofeudalism this time.
Show your support

Clapping shows how much you appreciated Jedi Economist’s story.