PeteBrant

BBC NEWS | Business | UK consumer inflation hits 2.5%


I liked this bit


So if you don't need to eat, or need warmth, and go everywhere by bike, then life is good

r32

I know its costing us a lot more each week ........ its got to be more than that. Another round of figure fiddling will be done by HM Government

SlimJ_2005

If you took things out that aren't a necessity, such as computers and DVD player which fall naturally due to progression in technology, I think the real figures would be somewhere in the region of 5-10%.

PeteBrant

It probably wouldnt be far off.

Mortgage/Rent
Food
Fuel (Heating and travel to/from work)
Council tax
Clothing


THese are your absolute bare essentials to live - I.e. you do not have an option whether you pay them or not, And interestingly, those items are probably subject to the highest inflation at present.

stilover

I'm sure the government are looking at deleting whatever it takes to bring inflation back to 2.2%

alcazar

iTrader: (2)

You forgot water bills, both of mine went up 8% Also leccy, it's gone up a lot too.

An article in the paper yesterday stated that less than 2% of the population now believe the government's inflation figure, and asked how long they can keep on referring to cheaply imported DVDs?

I reckon that lots more people now look twice at ANYTHING this government says.......but what's the alternative? Do we really want Dave the Chameleon?

Alcazar

PeteBrant

The CPI meaure is not that different from the old one, and the idea is that you meaure what people actually pay at the till rather than what the recommended retail price is.
The "old" headline inflation rate (RPI-X) has never included mortgage payments. You used to get the RPI-X followed by the RPI (the one that does include mortages) - Which is in effect what you get now - The headline rate (CPI) followed by the RPI.


Of course it's all smoke and mirrors, and it has always been the same no matter what party is in.

ScoTTyB

Nice to see they have just added memory sticks to the basket lol. If I could think of one thing whose price falls like a stone it would be those!

chocolate_o_brian

iTrader: (22)

would that 2% be pslewis different alias accounts on here then

lozgti

I'msure it was the National office for Statistics or something that said'60% of people don't believe government figures'

Why does the government even bother publishing figures.

I don't believe one word of what they say and I look forward to finding out who actually does

Oops,just read the above post.98% don't believe then.Excellent UK as not as daft as the govt thinks

PeteBrant

The figures are accurate. CPI is2.5%.

I have no problem beleiving the figures the ONS publish, you just need to know what the figures represent.

Dracoro

At the end of the day, who cares about these "figures". The FACT of the matter is the essentials in life have all risen considerably and this WILL damage consumer spending power (i.e. they can't afford the new TV, won't buy the new car this year etc.) which in turn WILL damage the general economy. job losses will result etc.

So while the economy is suffering and everyone knows itthe govt. will have their head in the sand whilst pointing to some meaningless stats.

unclebuck

They know it too.

They just lie about it and manipulate their meaningless figures to provide the 'proof'.

Prasius

iTrader: (1)

So.. what we've worked out from this is that Politicians are a bunch of lying gits?



The whole inflation figure thing has been a work of someones imagination for the last 3 or 4 years at least - they must pay someone to just pull a random figure out of the air that might just sound good to all the stupid little people

FlightMan

So that would be less than 2% of the population then?

PeteBrant

So when the bank of England base thier insterest rate decisions partially on the official inflation figure, they are "stupid little people"?

r32

Its all a big fiddle the RPI is more representative than the CPI. I just looked through the list. Fiddle, fiddle ,fiddle.............etc

Prasius

iTrader: (1)

No idea.. given the statistics being thrown around this thread though, they must make up a good fraction of the 2% who believe the official government figures

PeteBrant

Course it is. But that doesn tmake the CPI a "lie"

fast bloke

None of the inflation figures are representative of true inflation, but if you use them as a comparison figure so you can work out if inflation is increasing or decreasing, then you won't go far wrong. Just don't use CPI to negotiate your salalry increase. Personal inflation for 90% of the population is well above 10%. This isn't necessarily a bad thing, as it might help knock the borrow and spend mentality on the head. Most people waken up, want to be warm and have some food, then drive to work, be warm, do some work and have some more food, drive home, be warm and have some food. None of this really needs a memory stick or a cheap DVD, so none of the figures are representative of the cost of surviving. No doubt next months figures will include HBOS shares, pegging inflation back to 0.2%