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View Full Version : Inflation is "Only" 4.4%


chiglet
13th Aug 2008, 19:57
What absolute utter TOSH!......:mad:
I have calculated that:-
Dairy Products have gone up between 15-150%
Meat is up by 40%,
Bread, up by 30-45%
Power, unknown, but rising...
Petrol, Up to 30%+, but now falling
Credit Card Interest rates, up
Only "Saving Grace", House prices down....:=
Any comments welcome.
watp,iktch

G-CPTN
13th Aug 2008, 20:05
Having lived through the 70s, the current numbers don't seem important . . .

GROUNDHOG
13th Aug 2008, 20:13
The same statistics prove bacons up too..... pigs might fly!

Standard Noise
13th Aug 2008, 20:15
Well they tell us that prices are rising mostly in double figures, then how can inflation be so low? Some items must be going down in price to keep it at only 4.4%. Let me know what these items are and I'll buy them instead.

frostbite
13th Aug 2008, 20:50
For the true figure you could probably multiply that 4.4 by four or five.

Watch it come down by magic when it comes to the pension increase month (September?).

tony draper
13th Aug 2008, 20:54
Well you instruct your civil servants to remove anything from the calculations that might actually increased in price or percentage, tiz simple,inflation figures are about as meaningless as the unemployment or crime figures,Government figures have nothing whatsoever to do with reality.
:)

ArthurR
13th Aug 2008, 21:01
Must wear my glasses more, thought this thread was: Inflation is "Only" 4x4, "thought must check my tyres". But then again remember, figures can be manipulated. This would not be the first goverment to do this, when they take státistics, to get a favourable opinion for whoever contracted them, they will go to an area where they are most likely to get a favourable result, so for inflation figures they will take the lowest rises and use them. One of the qualifications to be a politician now, no matter where, is to be corrupt..... see the expenses thread from British MP's

mary_hinge
13th Aug 2008, 21:03
In the early 90s (I'll dig out the link) #10 and #11 Drowning street changed the inflation calculation 15 times in a 12 Month period to prove "things are under control":mad:

BenThere
13th Aug 2008, 22:15
I agree real inflation is much higher than the government stated rate.

In the US the purpose of this is to reduce the cost of pensions, social security and medicare costs without having to go to the public and confess the system is bankrupt. This will work through one or two presidential cycles and then a truly wacky solution will be found.

I suggest laying in some gold for when the sh!t hits the fan.

ShyTorque
13th Aug 2008, 22:48
I suggest laying in some gold for when the sh!t hits the fan.

Good advice, we tried that, but the present prime minister sold it off at a nice cheap price when he was chancellor..... :ugh:

Flap 5
14th Aug 2008, 10:03
The official inflation figure is disingenuous. The items we pay for every day such as gas, electric, food and car fuel are going up by between 10% and 25%. But the inflation figure treats with equal weight items like televisions which are going down in price but are only bought once in 5 or more years.

The true figure is clearly the average of items that are bought on a regular and frequent basis and is dependent on how frequently the items are bought.

The official inflation figure of 4.4% is a nonsense, but convenient for the government's statistics. However it will bight them and all of us in the end if they don't deal with the real cost of living.

Wod
14th Aug 2008, 12:44
Downunder, where I now live, the "basket" does weight your propensity to buy Rollers, Plasma screens or loaves.

What it can't weight is the canny consumer response to fluctuations in price.

Woolies ( a wholly reliable source, I know ) recently estimated consumer inflation on their stocked items at nearly 1% below the official number, coz people will substitute meat for fish, or sardines for cornflakes, to keep within a spend limit. Or not buy if the price gets over $1, which is my family's approach to avocados and mangoes.

If Pprune can come up with a better way of measuring Consumer price movements, I'm sure there is real money to be made.

Meanwhile, economists measure inflation, much after the fact, by looking at production and consumption or something serious like that.

VinRouge
15th Aug 2008, 17:58
well, inflation is currently over double the target. bearing in mind the only tool at the BOEs disposal to correct the situation is raising interest rates, I say double them. The resulting recession would bring inflation under control. And before you ask, yes, I am serious. This nation has a huge debt problem that needs sorting out.

Flap 5
15th Aug 2008, 22:52
It is interesting that Brown made the Bank of England independent. Their primary purpose was to keep inflation under control. Their weapon against inflation was interest rates. So why aren't they increasing interest rates now? Clearly they are not as independent as the government says they are.

The Governor of the bank has rececently had his job renewed after much deliberation by Gordon Brown. Obviously the Governor was 'persuaded' to follow thw government line. Independent? I don't think so.

Or is it just the wrong kind of inflation? They don't seem to agree with that reasoning when the unions say that this 'different' type of inflation is not in fact effected by higher wage claims.

The police nearly came out on strike and then the government 'found' considerably more money for Northern Rock, the 10p tax rate debacle and, of course, Iraq and Afghanistan. :mad::=

mary_hinge
16th Aug 2008, 11:20
Tables and weighting for each RPI cat contained here:

http://www.statistics.gov.uk/PIC/downloads/PriceSubIndices.pdf

If you apply the "weights" to your own spending levels then you get some grim reading. I wish my mortgage was only 6% of my spending. Food though, even at 11.1 is low, but shows an annual inflation 12.2 through to July.

BAMRA wake up
18th Aug 2008, 05:52
MH, online or download personal inflation calculator here,

National Statistics Online - Personal Inflation Calculator (http://www.statistics.gov.uk/pic/)

mary_hinge
18th Aug 2008, 08:36
Hi BAMRA wake up.
Thats what I did, so dug further to ascertain the weighting behind the programme