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Middle-class Inflation Twice Official Rate, As Petrol And Mortgages Prices Jump

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Middle-class inflation twice official rate, as petrol and mortgages prices jump

Middle class families are suffering from an inflation rate more than twice the official level, as the price of petrol, mortgages and alcohol all creep up in price.

According to an analysis of the official figures for the Daily Telegraph by Capital Economics, middle class consumers experienced prices rising by 5.3 per cent on an annual basis in May.

This is more than twice the official Consumer Prices Index – the Government's preferred measure of inflation, which dipped from 2.3 per cent in April to 2.2 per cent in May, the Office of National Statistics said on Tuesday.

The modest fall surprised some economists, who pointed out that it was the fifth time in the last seven months that inflation has been higher than expected.

A number of key items are starting to climb up in price. Above inflation alcohol and tobacco duty rises kicked in during May. Fixed-rate mortgages, which lenders have started to increase over the last week, are predicted to carry on getting more expensive, while petrol is now over £1 a litre on average, after having hit a low of 86p at the start of this year.

Middle-class families tend to drive cars more frequently than any other group as well as having larger mortgages, which is why they have been more directly affected by the increase in prices than other social groups.

The ONS also points out that the price of some discretionary items such as DVDs, clothes and television have all jumped in price as the weak pound pushes up the price of imports.

The Retail Prices Index, which includes housing costs, rose to -1.1pc from -1.2pc, while economists had predicted a further fall to -1.5pc.

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Funny how the last "real cost of living for the middle classs index" invented by The Daily Telegraph shows real middle class inflation at around -10%.

Petrol is cheaper now than 12 months ago for starters.

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Funny how the last "real cost of living for the middle classs index" invented by The Daily Telegraph shows real middle class inflation at around -10%.

Petrol is cheaper now than 12 months ago for starters.

it may be cheaper than a specific high point, but it's certainly gone up (by about 10 pence per litre) over the last 4 months.

If the QE works, in the short term many (including myself) will be happy just to get work. Paying extra for petrol, food etc will seem like a pittance compared to having a job again - If we don't get work soon, that's life over (as agencies/employers simply make assumptions past a certain age if you have "gaps" on the cv). However, in the long term rampant inflation and printing money will be just as disastrous. Thing is, in the long term we're all dead, so many may well vote for the incumbent govt if it does bring back the jobs. If.

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it may be cheaper than a specific high point, but it's certainly gone up (by about 10 pence per litre) over the last 4 months.

If the QE works, in the short term many (including myself) will be happy just to get work. Paying extra for petrol, food etc will seem like a pittance compared to having a job again - If we don't get work soon, that's life over (as agencies/employers simply make assumptions past a certain age if you have "gaps" on the cv). However, in the long term rampant inflation and printing money will be just as disastrous. Thing is, in the long term we're all dead, so many may well vote for the incumbent govt if it does bring back the jobs. If.

The point is, everyone can cherry pick items and timescales to suit the point they're trying to make at any given time. That's why the Daily Telegraph are in such a mess now, the index that said "real middle class inflation" was 10% last year shows minus 10% now. The govt figures are both transparent, consistent and work well long term; I believe CPI has risen about 35% since 1997.

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Higher for the older age too, there is a pattern emerging here.

Maybe ipods and mobile phones are dragging the under 30's inflation rate down to zero. :lol:

http://www.moneywise.co.uk/news-views/2009...higher-over-75s

Cost of living 77% higher for over 75s

By Rebecca Atkinson Last Update: Tue, 19/05/2009 - 16:15

Older couple

Older people face a rate of inflation 77% higher than people under the age of 30, new research reveals.

The Consumer Prices Index (CPI) – the official rate of inflation used by the Bank of England to set the base rate – fell to 2.3% in April, down from 2.9% the previous month and a peak of 5.2% last September. The Retail Prices Index (RPI) – which unlike CPI includes housing costs such as mortgage interest payments – also experienced a dramatic fall during April. It first turned negative last in March, but has now fallen further to -1.2%.

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The point is, everyone can cherry pick items and timescales to suit the point they're trying to make at any given time. That's why the Daily Telegraph are in such a mess now, the index that said "real middle class inflation" was 10% last year shows minus 10% now. The govt figures are both transparent, consistent and work well long term; I believe CPI has risen about 35% since 1997.

:rolleyes:

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