Monday, May 19, 2008
The lie that is CPI.....
Mail: Food prices rising at the fastest rate since records began 10 years ago
''...Food prices are rising at their fastest rate since records began more than a decade ago, according to devastating figures published today. The cost of 'basic' food from flour to eggs and beef mince to cheese have soared to prices never seen before. The figures, from the Office for National Statistics, highlight the crippling impact on families struggling to afford their weekly shopping bill.
...''
Posted by hpwatcher @ 04:07 PM (388 views) Add Comment
5 Comments
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1. cyril said...
Notice that the basic ingredients like eggs and flour have gone up the most. Manufactured food products like tea bags have gone up less because these are 'higher value added' and don't contain much food.
Expect to see more of these sorts of products entering the food price index - pot noodles, cornflakes etc.. Basically any product which is mostly made of cardboard, plastic or air.
2. drewster said...
I have an idea for a tv show, Plantation Plantation Plantation:
Kirsty: "Take this slightly mouldy bread loaf, sprinkle some icing sugar on top, and you can sell it as a speciality cake for three times the price!"
Phil: "Meanwhile in Dorset, the S family want a large bag of Basmati rice from Sainsbury's. They also want a small flat-pancake in Tesco Metro. But at £3.99, is it out of their budget?"
Kirsty: "They'd better hurry up and decide because food prices never fall! If they do, I'll eat my hat."
Actually we're already seeing thrift shows on TV: Martin Lewis' (of moneysavingexpert.com) series "It Pays To Watch".
3. icarus said...
The UK weighting for food in the index is about 10 - 11%. This is lower than most other countries and it means that food prices can double without having a big effect on UK CPI. The CPI has little relevence to HOUSEHOLD expenditure since the average household spends a lot more than 10% of its total expenditure on food.
4. planning4acrash said...
The only relevant measure is growth in the money supply.
5. planning4acrash said...
I just worked out the real impact of money growth. If it is greater than GDP growth, financiers are basically denying us, the public of the fruits of economic growth, plus a bit. Sucks, eh?!