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Something I Just Realky Aint Getting

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here something that is much confusing me

data out today shows household bills have risen this year 5%

same data available today says house prices have risen and average 5%

oil is up must be 10% this year

so what exactly is going down in price to justify an inflation rate of 2%??????

also i believe that figure of household bills up on 55 is way too low

bbc latest news

thats on the bbc

first of all that figure takes into account all household costs including mortgages

well havent intrest rates risen about 20% since last year

it states council tax has risen 11%

electricity and gas has risen around 8% and 12% respectively

i assume that most of these things are what are considered the main parts of a household bill, so where do they get 5% from, to achieve that many things in there items that make up there household bills must have fallen, but what?

This is confusing me immensly

add in that overall mortgages in the uk ie money owed on the average house is surely higher per average household than it was a year ago?

SO WHERE THE HECK ARE THEY ACHIEVING 2% INFLATION FROM

can someone put me straight on where im going wrong that i cant see 2% but more like an overall 5-7%

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SO WHERE THE HECK ARE THEY ACHIEVING 2% INFLATION FROM

can someone put me straight on where im going wrong that i cant see 2% but more like an overall 5-7%

You're not alone in asking :) Actually I had a conversation with my partner's dad yesterday in which inflation was mentioned, and his comment was "2% - you're joking, more like 5%"

In order to achieve the magic figure, you just need to be very selective about what you take into account :)

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spot on greencat.

the basket they use also includes things like DVD players and the like,which have fallen dramatically in price(well the cheap ones have,you go to PC world and try and buy a desktop PC and the models all exactly in the same price range as they were a couple of years ago....the old models are obsolete so newer equivalents spring up)

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Guest Riser

Brown has been fiddling inflation figures for years, keeping them low so he can control pay increases which are the most powerful source of inflation. That should actually be "private sector pay increases" as public sector increases have already started to increases well above his 2% CPI inflation.

Browns inflation figure ignores council tax because it is associated with housing, ignores direct fuel costs, and ignores the extra 13.5 pence in the pound we are all paying through the 90 stealth taxes he has introduced since 1996.

If the MPC used a realistic inflation figure of perhaps 5 - 7% then interest rates would be going up instead of down the public would start to realise what a complete mess Brown has made of the economy.

He is cooking the governments books as we speak by ignoring massive government debts such as the £400-600 Bln liability for public sector pensions, £20 Bln for his failed PFI schemes, £25 Bln railtrack write off. On the news the other night they were talking about £50 Bln for de-commissioning our existing nuclear reactors, and then there will be the cost of building new ones by 2020 to meet the future energy needs of the country.

He has built up this debt despite income from north sea oil which is now drying up, a £ 25 Bln windfall from mobile network licences, arond £4 Bln selling half the UK gold reserves, and squandering the short term benefits of the biggest consumer boom in history. No more boom and bust the guy is an arrogant pr!ck.

Edited by Riser

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As someone mentioned electronics are falling.

There are good deals to be had on cars too (if you can afford the petrol!)

The price of clothes and shoes has fallen dractically too.

Food prices are right down - my local tesco is selling all of the above at prices that would make your eyes water.

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I've heard rumours that the basket of goods measure used for inflation will be changed to simply be a can of beans and a loaf of sliced white bread - both of which have seen falls of between 5 and 10% this year.

When I left good ol Donny, a standard loaf of bread was about 55p. Now, three years later, in Leeds, you can't buy a loaf of bread for less than 89p. Whats that all about? Bread inflation, what next? :lol:

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When I left good ol Donny, a standard loaf of bread was about 55p. Now, three years later, in Leeds, you can't buy a loaf of bread for less than 89p. Whats that all about? Bread inflation, what next?  :lol:

Bread is a tricky one, no two loaves are alike, the crap you buy is Tescos for 45p is just something to stop the jam falling on the floor, now Waitros is a different ball game all together, there you can buy wheat bread, olive bread, bread with tomatoes in, the list is endless.

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Interesting bit of deflation going on with some supermarket / consumer prices - i.e £20 DVD players and cheapo shoes being pumped out of China. The Economist had an interesting article discussing the effect of increased sizr of Chinese labour market but suggesting that capital had been misallocated into housing and real estate.. I'll have to find it and post.

The inflation "baskets" the government use are always going to be skewed - but this one seems esp dodgy...

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What a wonderful system the government has created for itself!

Brown's mismanagement of the economy is more understandable when you

consider how his actions impact upon the Inflation measures

Could this explain why Brown likes to sell the gold reserves?

Rising gold prices show up his inflationary activities, so maybe he dumps gold cheap as an attempt to hide this?

Perhaps other central banks are up to it too

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a desktop PC and the models all exactly in the same price range as they were a couple of years ago.

I wonder whether the ONS / treasury aren't missing a trick here. What might be the hedonic adjustment for processors moving from 2.6Ghz to 3.0Ghz? That extra speed has gotta be worth something, right? Hey presto, inflation EVEN lower ...

...forget the fact you need those extra cycles just to run the plethora of firewalls / virus scanners / spyware nowadays essential to stop some script kiddie from hyjacking your sytem to hack the F-fr!ggin-BI!

:P

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He has built up this debt despite income from north sea oil which is now drying up, a £ 25 Bln windfall from mobile network licences, arond £4 Bln selling half the UK gold reserves, and squandering the short term benefits of the biggest consumer boom in history.

and let's not forget the £5bn he takes from pension funds per annum since he scrapped the dividend tax credit.

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And they wonder why the high street has been struggling recently. They only raised the interst rate by 1.25 percent over what? a year or so?

Along with the debt bubble, the fudged inflation measure has contributed to the slow down in consumer spending. Pay rises in line with CPI are no good to anyone.

People have run out of money.

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I really believe that the inflation fiddle is beginning to "play out" now. People are generally beginning to believe inflation is higher now. Petrol prices are probably the main reason for that, but I think that the penny is beginning to drop with the british public.

Rising oil prices are coming at the same time as the end of MEW and peoples disposable incomes are dropping. Add into the mix rising unemployment and the huge debt burden and we could be about to witness something nasty.

Time will tell, but I think the fact that you can pick up a DVD player for £20 is about to become rather unimportant to most people.

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Back to something Needle pointed out earlier ('scuse the pun):

The price of clothes and shoes has fallen dractically too.

Food prices are right down - my local tesco is selling all of the above at prices that would make your eyes water.

The idea of dropping prices of supermarket goods is worrying. They should be increasing if petrol prices are going up.

No, instead, prices are dropping and supermarket profits increasing!?

Farmers and factories are paying the price: South African fruit farms are going bankrupt, Scottish fish farms and British vegetable & stock farmers are in financial trouble and Chinese factories are squeezing more hours out of their sweatshop labourers (who earn about 27p per day!)

- as a result of British supermarkets having such powerful control over the prices. There are few competitors left!

Eventually there will be very few suppliers of goods left solvent and there will either be serious shortages, and/or prices will skyrocket.

What happened to the fight against world poverty??

Supermarkets seem to have a big hand in making it worse.

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And they wonder why the high street has been struggling recently. They only raised the interst rate by 1.25 percent over what? a year or so?

Along with the debt bubble, the fudged inflation measure has contributed to the slow down in consumer spending. Pay rises in line with CPI are no good to anyone.

People have run out of money.

Its easy to see how they've run out of money as well. A 1% reduction in net income may not seem a lot, but a 1% loss of disposable income can feel like 10% of net income if you originally had 10% disposable of net (disposable being what you have left after all standard monthly expenses taken out).

I've heard people talk about thier disposable income disappearing from there budgets. They still have there jobs but they are starting to go bust standing still.

Looking through the bankruptcy notices down south I see sensible middle class proffessionals go to the wall while still working, its a nightmare. It used to be idiots that went bust.

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Bread is a tricky one, no two loaves are alike, the crap you buy is Tescos for 45p is just something to stop the jam falling on the floor, now Waitros is a different ball game all together, there you can buy wheat bread, olive bread, bread with tomatoes in, the list is endless.

Perhaps you should look at whats in the crap bread from the big three most times its healthier. The (good stuff) will fur your Arteries up for sure.

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Farmers and factories are paying the price: South African fruit farms are going bankrupt,

...- as a result of British supermarkets having such powerful control over the prices. There are few competitors left!

Eventually there will be very few suppliers of goods left solvent and there will either be serious shortages, and/or prices will skyrocket.

What happened to the fight against world poverty??

Isn't it ironic that only a month on from all that "make poverty history" guff, the Beeb is able to run these two stories at the same time:

South African grape farmers face squeeze, 12/08/05, BBC

and

Food crisis 'runs across Africa', 10/08/05, BBC

In itself it might have only a small effect on inflation, but who sees this as sustainable or ethical?

Clearly it would be illegal for me to suggest that the West's drive to create a glut of grapes in Africa, whilst simultaneously irradicating subsistence farming and thus hunger, might lead to future suicide bombings, so I won't.

PS: Giraffe Cat : thanx for that m8 :lol: Ina mad world humour is your only protection...

Edited by Sledgehead

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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