mmuuzzyy

Read the below link and have a question....

Analysts predict Bank rate will be cut to 4.5% - Times Online

Its mentioned that inflation in april was above 3%.... so does that mean the cost of say a £1 loaf of bread increased by 3p to 103p in april ?

or

does it mean that inflation over the year so far had average yearly inflation of 3%
for example
3% over 12 months = 0.0025% (1/4 of a %) increase on the price of my £1 loaf of bread (now the bread costs 100.25p)

basically is the inflation that is being talked about a year inflation rate or monthly ?

apologies for being thick

NACRO

It means the inflation rate you're talking about is the government approved, massaged figure which they'd like to massage further by precluding food amongst other things.

Revealed: the real rate of inflation - Telegraph

Paul3446

I had to chuckle yesterday, we got some local government guff through the post about Council Tax saying the increase of 3.9% was below inflation.

Yet when the government give out pay rises they off 2% because that's inline with inflation.

So do they use 2 different figures depending on whether they are giving or taking your money?

john banks

It is over a year, but loaves of bread commonly go up by 3p in a much shorter space of time. They think we can eat plasma tellies and crush up Ipods to put in our petrol tanks.

Trying to keep the dog end of a lax credit boom going by dropping rates isn't going to work. Dropping the central bank rates only seems to help the banks, not the consumers during a credit crunch. British public and private finances are a disaster. We need a quick and deep recession to sort out all the malinvestment and then rebuild again. As it is I'm fearful we'll have something much more drawn out and depressing.

We have at the heart of it all what I believe to be a fundamentally corrupt fractional reserve banking system that robs the people through inflation and rewards bad investment.

stilover

What he said.

stuart n

There are 2 figures for inflation the CPI and RPI, 1 excludes mortgages. The public sector pay offers are calculated on the figure which excludes mortgages. Some calculations put the current inflation figure at 11%