Friday, Jun 20, 2008
Real inflation over past 2 years - 26%
MSN: Monthly outgoings 'soar 26%'
Consumers have seen their monthly outgoings soar by 26% during the past two years driven by higher housing and energy costs, research has shown. The amount people spend on bills and living costs has soared from an average of £945 in June 2006 to £1,281 now, according to insurer Combined Insurance. Consumers are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30% and mortgage repayments jumping by 33%.
Posted by uncle chris @ 10:15 AM (648 views) Add Comment
12 Comments
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1. george monsoon said...
This is more like it, but still very shy of the real figure..
I challenge anyone here to argue that real inflation is currently running below 20% p.a.
2. Rental John said...
I can't spend anymore than last year, cause I don't have anymore than last year! I just buy less with what I have......until I guess I will have to live on one loaf a month. Still, I'll be able to use my wheelbarrow load of £5 notes as toilet paper.
3. tyrellcorporation said...
My rent went up 2.5% (the only increase in over 2 years), slightly shy of the 30% mentioned here!
4. Kbob said...
My rents not gone up in four years - Mind you that's been for a 'luxuary' 2 bed flats in E14, theres no shortage of them.
More MSN rubish.
5. Stevie Dee said...
Oh dear... how long can the BoE and the government BRAINWASH people for? People are waking up to lower house prices (debt), Credit Cards (debt), Higher Domestics Bills (even more debt), expensive children (debt). House Prices will plummet, increased unemployment, lots of debt... and a "BOOMING" Black Market. My tip is to buy "Tea" & "Coffee", and cheap rolling tobacco (currency) import & spirits.
It's getting towards Hyper-Inflation, and the public will be "The Last To Know!!!".
6. jonb said...
I was agreeing with it until I got to the bit where it said that rents had gone up by 30% in the last year. That is complete rubbish. The only reason my rent hasn't gone *down* by 16% in the last year is that I'm too lazy to move to a similar place to mine in the next street to get a cheaper rent.
7. george monsoon said...
Ok, I actually read the article this time and not just the thread.
My outgoings have increased 28% since April last year, measured against, Food, clothing, petrol, council tax, gas, electicity, tv license, insurance, childcare and car tax. - excluding rent that has remained unchanged for the last 3 years.
8. mark said...
pasta in tescos was 99p before we went on holiday 4 weeks ago, now we are back the same pasta is 1.19 but we dont have an inflation issue do we????
9. Stevie Dee said...
pasta in tescos was 99p before we went on holiday 4 weeks ago, now we are back the same pasta is 1.19 but we dont have an inflation issue do we????
Yes unlike Zimbabwe, we live in a sophisticated society.. that is 19-20% inflation. CPI 3.3%
10. James said...
Only on your question marks, mark!
A lot of this *isn't* inflation per se, it's increases in commodity prices (the wheat for your pasta). This will only become embedded inflation if wages rise in line. This does, unambiguously, mean lower living standards, but given most of the posters here are net cash it is very, very clear that inflation is the danger to your interests.
11. str 2007 said...
You're right of course James.
I keep reminding myself that my savings are 'house money'. So becoming more valuable by the day on that measure.
12. doom&gloom said...
inflation is the decline in purchasing power of a currency, so increases in commodity prices is most definitely inflation. Wage inflation or price deflation is relatively a good thing -results in higher standard of living.
I do not hold with the theory that inflation will become 'embedded' if wages increase. this may have been true in the past when the highest proportion of input costs was labour cost, But now labour costs are a much smaller proportion of input costs, so wage increases will not have as great an impact on output prices.
It is not pay rises that threaten my cash in the bank - it is price rises.