Fuelling inflation

3382 Comments | Add Comment | Blog entry posted 13th February, 2008

{poll=45}

Inflation is currently running at the highest level since June last year, and rising fuel costs are to blame – that’s the conclusion of the latest report on inflation by the Office of National Statistics (ONS).

The two indicators of inflation, the Consumer Prices Index (CPI) and the Retail Price Index (RPI), both show an increase. CPI puts inflation at 2.2%, up from 2.1% in December, while RPI shows inflation rose from 4% to 4.1% over the same period. It’s the fourth month in a row that inflation has exceeded the government’s target of 2%

The report points the finger at a number of factors including food and drink prices, but says “the largest upward pressure came from an increase in the price of road fuels.” The national average price of unleaded rose 1.3p in January alone, taking it to a total of 103.9p per litre. This time last year a litre of petrol cost 87.5p.

High fuel prices drive inflation because fuel is a fundamental to the infrastructure of the UK. Our food and basic goods are transported using it, and if the price goes up, so does the price of our goods. A small amount of inflation is healthy for the economy, but too much and we start to run into problems – missed mortgage payments, repossessions and unemployment.

Worse still, the report’s inflation figures don’t take into account the impact that the energy price rises in January will have, because the current model assumes it will take up to 4 months for the price rises to take effect. The full effects of inflation may also have been dampened by a decrease in clothing costs and cut-price offers on the High Street, which effectively offsets the problem of high food and fuel. Economists are warning that this, combined with two further 2p increases in fuel duty planned for April and October, will mean inflation will hit 3% by the end of the year.

The freight industry sent a letter this week to the Chancellor, asking him to scrap the 2p a litre increase planned for April, and in a letter to the Daily Telegraph, 11 leading business figures argued that they were being hit simultaneously by a slow down in the economy and rising fuel costs.

It said: “At 50.35p a litre, UK fuel duty for diesel and petrol is already the highest in Europe. Indeed UK diesel duty is double the EU average rate of 25p a litre. The chancellor now plans to increase this by 2p per litre from 1 April.”

“Such an increase will generate further serious difficulties for the transport and forecourt industries, business drivers, those dependent on the car, and for businesses or individuals in remote or rural areas with no alternative transport options.”

Have you noticed an increase in living costs? Are you worried about the effect that further inflation rises will have on you? Do you think the Bank of England is capable of controlling inflation?

Replies to Fuelling inflation

Chris D March 10, 2008

report reply to Chris D

Enough now. Because we fight the wars with the USA The others mind their own business and get on with making the best for their own people which is why the Scandinavian countries and Switzerland/Austria have a much better standard of living than we do. They are not really green taxes they are red taxes designed to pay for the wars. This little country of ours has to play at being a world power and its amazing our politicians and many of our citizens think we still are.

Enough Now March 10, 2008

report reply to Enough Now

Why is it that its only the UK that has to pay the heavy green tax while everyone else around us don`t? Why should we be punished while others enjoy the fruit of economic empowerment?

Even if the greenies get their way others will not go for it so the world as a whole sees a once rich nation in economic ruin for the sake of showing others.

Its just not fair I tell you. Lets tax volcanoes and every living organism that produces CO2. They are not going to stop cutting down trees just because of green policies. Look at brazil telling them to stop is like removing mile from a todler, how are they ment to survive? Tax UK seems to be the answer.

Chris D March 10, 2008

report reply to Chris D

Well pointed out Jack but the 3 billion is only the official figure. The government have hidden much of the spending elsewhere so this massages the figure down. The real cost is much higher thats why taxes are rising to pay for the war with a lot of the money being diverted from the NHS, Educaton, Road building and care for the elderley. Unfortunately no party will ever give you the choice to vote for the troops to come home with the money being spent where its needed. At home.

Diyman March 10, 2008

report reply to Diyman

Blah many of us have jobs. I am on holiday this week helping Salvation Jones to build a new stand for The Glad Tidings Mission. Yes I agree that we should all try to make the best of what we have and most of us do just that but why should we be silent in hoping for a better world for our kids and grandchildren. Scoff all you like but at least this forum and others like it give an opportunity for ordinary people to exchange views. I dont agree with many on here but I recognise their right to state their point of view. I actually get quiet a few laughs from some of the comments and I think many others do and I also find it gives a good opportunity to let go of some stress.

Jack March 10, 2008

report reply to Jack

It was announced today that the war will cost the tax payer 3 billion next financial year. At least now you know where your green taxes are going.

Brian Squire March 10, 2008

report reply to Brian Squire

Re-3344 Blah

I wasn't aware I as so unhappy until Iread your comments Blah.
But now Im absolutely estatic as i know i'm a civilised person who would not make such offensive comments to my fellow man but you are the exception

Brian

Blah March 10, 2008

report reply to Blah

Why don't you moaners go and get a life and quit your bloody whinging. If you put half as much effort into finding a better job or enjoying what you have as you do moaning you might not be so unhappy.

Nigel Cole March 10, 2008

report reply to Nigel Cole

Warren 3332 - You appear to have contradicted your own argument. You claim that if the fuel tax was reduced then tax would have to increase elsewhere, and yet on your own personal level you have been forced to take a pay cut and a more local job in order to save on fuel costs. Therefore, the fuel prices have resulted in a LOWER tax take for the government by virtue of you accepting a lower paid job.

This is exactly why the government needs to think intelligently. If they screw the public with tax rises, then they will face a recession and a lower tax take. If they reduce fuel tax then inflation will be alleviated in all products, allowing interest rates to be reduced, which might just help avoid an out and out housing slump, allowing the economy to continue doing OK and keeping the tax money coming in.

But I guess the words government and intelligence are unlikely bedfellows, so we will continue with dunce economics until we are all f**ked.

Rev Salvation Jones March 10, 2008

report reply to Rev Salvation Jones

Broke I think the problem goes further back than just 10 years. I dont look back to 1998 as the golden years of family life. I think Brian was right that freedoms worth having have been corrupted. Freedoms and rights are hard won but with them comes responsability. Eg Freedom of the press. Certain Tabloids think it is ok to produce explicit pictures of young 18 year old teenage girls on one page and trying to turn everything into a sex related story while on the editorial page they claim the moral high ground. When working men say no to exploitation and refuse to buy these papers then perhaps the absentee foreign owners will take note. Can we pull our people back from the base appeal of these people.

Joe Public March 10, 2008

report reply to Joe Public

Wednesday is judgement day for your bank account MWUHAHAHAAA (evil music in the back ground, flash of lightning and a rumble of thunder but the storm is real)

Brian Squire March 10, 2008

report reply to Brian Squire

Re-3337 RSJ.

I totally agree with you REV. It seems that the loss of moral values is the price paid for the freedoms many of us fought so hard for in the "60's".

I don't think anyone who lived through those times would refuse to return to them but it is as, always, the misuse of those freedoms by capitalism and politics that has eroded our family system.

regards
Brian Squire

Age 14 March 9, 2008

report reply to Age 14

i think that it is a bad idea because when im older i will not be able to afford to run a car

Broke March 9, 2008

report reply to Broke

Rev,i do apologize for hitting a nerve,is it not blair/brown over the past ten
years have been destorying the fabric of marriage and family life.
Young People do not understand life,after the celebrity culture,media pressure,government pressure,they are the lost souls and are not prepared
to wait for anything.
Guidance is needed here now,so the next generation and others will be strong.

Rev Salvation Jones March 9, 2008

report reply to Rev Salvation Jones

Thanks Brian Labour.conned
I think there is a big wind coming and its not Best Bitter. Broke I think you are correct we have all been tempted by greed. As others have said many know the price of everything but the value of nothing. Times past where much harder than now but the difference was community. People helped each other and kids respected their parents. The family was the rock that held us all together and faith was important to the majority. We had little in the way of possesions but enjoyed the company of each other. Look what you have done now Broke you have made me go all serious. I tell you one thing I would give up my car, tv , and all the other techno clutter to be able to return to those days.

R.n.g.mccormack March 9, 2008

report reply to R.n.g.mccormack

It's a shame we were are not more like the French in cases like the rip off fuel prices this government are just putting their fingers up to the British motorists with fuel cost every thing goes up

Labour Conned March 9, 2008

report reply to Labour Conned

Bore da! Reverened Jones,

Carefull whilst on the west coast chapel run there's a big wind acoming boyo :)

Brian.

Broke March 9, 2008

report reply to Broke

Rev,greed is this one of the big sins,has not our politicians fell to temptation,
do we need a messiah at westminster,like Jesus and the moneylenders at
the temple.

Broke March 9, 2008

report reply to Broke

3332,Warren,glad you done the right thing,millions of people would like to
change jobs or move to jobs,but unable to.The USA have the US banks to blame
for starting recession,by ripping off the public tempting them with cheap loans
they could not afford,then world banks for being greedy.
Our government should cut costs like you did,public spending is out of control,
but brown and the rest do as they please.

Warren March 8, 2008

report reply to Warren

I'm no fan of the government but I don't think there is a lot they can do, if they dropped taxes on fuel they would have to get the money from somewhere else. We in the UK aren't the only ones suffering, the price of oil is going through the roof. Look at the situation in Nepal and South Africa to name a few. The US is facing a major recession due in part to high gas prices.

People should be aware that oil is a finite resource and once its gone its gone.

I have recently changed jobs so I'm within cycling distance, I took a paycut but at the end of the month I'm better off.

Rev Salvation Jones March 8, 2008

report reply to Rev Salvation Jones

Broke & Brian labour.conned

I will write tonight to Brother Livingstone suggesting that he join me on the Glad Tidings Mission this summer. The other sides candidate Boris also looks promissing with his mad hair and outrageous suggestions thank you brothers for inspiration.

Hwyl fawl

Labour Conned March 8, 2008

report reply to Labour Conned

Rev' Jones

Noswaith dda!

I will drink to that, along with a few others on this site, cheers :)


Nos da!

Brian.

Broke March 8, 2008

report reply to Broke

Rev,i would suggest look east,to the mayor of london or is it to late has he,sold his soul to the devil.

Rev Salvation Jones March 8, 2008

report reply to Rev Salvation Jones

Broke it leaves me like you and everyone else on this site I am playing to the lord for deliverance from high fuel prices however at least being a poor man i dont have to take heed of the lords words that it is easier for a rich man to pass through the eye of a needle than to assend into the Kingdom of Heaven so no my son I am not a stagecoach shareholder but I pray that their greedy Directors and Shareholders will surely be cast down into hell where one can only hope they are gridlocked for eternity. I will be saying a prayer tomorrow for yourself and Labour.conned and anyone else ( I draw the line at Little Hitler he can sod off back to South America) opps sorry Lord.
You never know you may see me if you visit the North Wales Coast this summer. I start at Rhyl and work my way down the coast preaching about the evils of excessive drinking. Usually my good friend Best Bitter acompanies me to demonstrate to any in doubt what the raviges of drink can do. He sits through the sermon looking pathetic ,picking his nose and farting. Its a sad example but most sign the pledge after seeing him. If you can think of anyone else suitable to keep him company please let me know.

Labour Conned March 8, 2008

report reply to Labour Conned

Bore da! Gareth williams, sounds like you have more than your fare share of Taff inyer boyo, just like meself, couldn't agree with you more, unfortunately when ever I make a suggestion of what we could do to take action against Broon and his tax grabbing, I get a validation code incorect message blocking my blog

Nos da!

Brian.

Labour Conned March 8, 2008

report reply to Labour Conned

LITTLE HITLER,

Gervister kellern, velcommen back from your holidays, I bet your likkle legs are vorn out from all that goosing about with all your old comrades in South America.
Enjoy your stein whilst you still can, bcause it vill soon be leaving the nasty taste in der mouth

Tc March 8, 2008

report reply to Tc

The Esso garage by me has just put the price of a litre of diesil up to £1.15.9
The are taking the piss now!!!!

Brian Squire March 8, 2008

report reply to Brian Squire

Re-3319 Best Bitter
Surely you have noticed by now that the smoker has been crushed into his ashtray and the motorist is being hounded into the garage never to be seen again, so the drinker is now going to be drowned in his pint pot-so

No Smoking in public
No driving in public
No drinking in public

That leaves the air that you breath to be taxed, but don't hold your breath or you'll be charged with tax evasion

Brian

Broke March 7, 2008

report reply to Broke

Rev, where does that leave you,looking out the bus window or are you
stagecoach shareholder.

Rev Salvation Jones March 7, 2008

report reply to Rev Salvation Jones

Broke Fear not my son for you will be rewarded in Heaven which may be sooner than you think if you dont get clear of the buses. My son give unto Stagecoach what is theirs and remember blessed are the poor for they shall inherit the bike lane.

Broke March 7, 2008

report reply to Broke

What about the public transport company's (buses) posting big profit's,subsidized by us,so next time a bus drive's past you and dissappers
into the distance,you still stuck in a jam,looking at the empty bus lane,
remember you are doing your bit to make stagecoach,arrvia or london buses
shareholders richer

Rev Salvation Jones March 7, 2008

report reply to Rev Salvation Jones

Sinner Best Bitter we at The Glad Tidings Mission are commited to getting the demon drink banned and Brother Cameron is to be congratulated.

Bestbitter March 7, 2008

report reply to Bestbitter

Enjoy a pint while you can. We are all to face a collective punishment from Cameron and the tories. They have decided that because too many tear away teens are getting blotto on the streets buying drink from the supermarkets and convenience stores the answer is to put taxes on drink up for everyone. Bloody wonderful they have taxed everything else that working people enjoyed last time they were in and now its booze. It wont make any difference to the yobs they will still find the money but it will stop me and me mates having a few drinks on a weekend. The answer of course is to enforce the existing laws but oh no that would take some effort.

Broke March 7, 2008

report reply to Broke

Has anyone have a top five city/town that,s a nightmare to drive in:-
1 London
2 Reading
3 Portsmouth
4 Oxford
5 Swindon
Worst county Surrey,won't take my car on the roads potholes,never seen so
many,not one road,all over,what has the money been spent on?

A Little Hitler March 7, 2008

report reply to A Little Hitler

Ja I too not getting on web site . I come back from holiday with old freinds in South America and unable to get on blog to talk to old mate Labour.conned. Very strange things happening on blog everyone checked by GCHQ first because of subversives. Ja I think I go for stein of beer now!

Kevin Dell March 7, 2008

report reply to Kevin Dell

yeah and if everybody did that, just think the next government could be a load of rubbish, just like we have now

Broke March 7, 2008

report reply to Broke

3307,are you implying,that if a person voted for all candidates,on a ballot paper,the paper could be spoilt.

Labour Conned March 7, 2008

report reply to Labour Conned

KEVIN DELL,

Not at all Kev' but to say the least, it was a bit political about Hur Hur Broon and about protesting on the streets of london against unfar tax hikes etc' :)

Brian

Kevin Dell March 7, 2008

report reply to Kevin Dell

Labour conned are you trying to post a web address, as it wont let me post them

Labour Conned March 7, 2008

report reply to Labour Conned

That makes it four times today that I have tried to post my blog and it won't accept my correct validation code, very fishy me thinks, are my comments? being censored?

Brian.

Labour Conned March 7, 2008

report reply to Labour Conned

I've tried three times to post my comments today, anybody else having the same problem? the validation code are not being accepted.

Gareth Williams March 7, 2008

report reply to Gareth Williams

blah blah blah is all I see on here.....your own little worlds which seem so important to you all that you dont stop to look at the bigger picture.
Fuel prices are never going to drop unless we the public start executing politicians.....which to me seems like a good idea right now....o we start voting with our feet.
Come next election everyone vote either conservative or lib dem and I guarantee you that within 6 months we're complaining of the rise in fuel prices.
Nothings ever going to happen because everyone in this country is too toothless to do anything about it. Sure b!tch and whinge because you can but have any of you got the balls to stand up and do something about it? No!! If I thought people would follow me then I would do something drastic to get the attention of the papers and the TV but most people are full of cr@p. They talk a good fight but in reality they are just sheep being fattened up my the wolves we call the government.

This website is a joke.....since its been running whats improved??? Anything?? No....its just another place to vent your anger. Pointless......utterly pointless.

Broke March 6, 2008

report reply to Broke

Local elections are coming up,use your right to vote,use your vote wisely !

Nigel Cole March 6, 2008

report reply to Nigel Cole

Ironic isnt it, how Gormless Gordon is trying to get utility companies to pay a windfall tax, when he has added 6p onto the price of petrol in the past 8 months - he added 2p + vat in October which equals 2.35p, but has received a 'windfall' vat receipt of 3.5p on the remainder of the price rises.

I only wish I could wring his neck when he urges restraint on everyone elses wage claims in order to keep inflation and interest rates down, whilst he willingly adds 6% onto fuel prices in 8 months or a 9% annualised fuel inflation rate - which serves only to pump up inflation figures and ensure that we get stuffed with a higher interest rate.

The past 15 years of worldwide economic expansion have made many people look like experts, from sub-prime borrowers right through to our own sub- prime minister. Maybe the time has come to move on from the idea of blockading refineries, and to vent our anger at this government and the bank of england.

Labour Conned March 6, 2008

report reply to Labour Conned

work for a living, own a house, pay rent, drive a car, eat, drink, breathe even?..... then according to Broon we are all public enemy No1 and have to suffer his great big cluncking fist in our pockets.

That is unless you are a real criminal, then you get treated with kid gloves at taxpayers expense, let out early or let off, only to come and prey on us yet again.

Ang on a bit that sounds a bit like the present labour government or am I just being bitter again :)

Yes I'm back

Brian.

Lyn March 6, 2008

report reply to Lyn

The way I see it Darling darling will probably go ahead with the 2p tax rise.

Ken's re-banding of the Congestion Green Emission Tax thingy will put most drivers in the high bracket as they will see their car being listed as a high polluter, even though it might a 1.6 engine.

Your car is condemed, by THEM!

And THEM will cause you pain in your wallet!

So as drivers we pay tax on/for:
Buying a car. Inludes VAT
MOT
Servicing. Includes VAT
Car Parts. Includes VAT
Road Tax. Includes VAT (I think)
Fuel Levy
Petrol. Inlcues VAT.
Congestion Tax
Low Emission Zone

So are we the highest taxed drivers in the world???

So are you going to vote for? Ken and Labour Tax Bandits(not that it would make a change who sits in the driving seat of parliament)???

Just a different note from a post below... the Charities Commission have been upset by the goverment and Darling darling as they plan to reduce the 22% income tax to 20%... but don't let that fool you into voting them back in. They'll get you back another way as they always do... probably another green tax on drivers!

Add Your Comment

Your email address will not be published nor sold to thrid parties.
All fields are required.


Please note that any viewpoints published here as comments are user's views and not the views of PetrolPrices.com (Fubra Ltd)