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Cpi And Rpi May

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CPI year on year: 3.4% against expected 3.5% and previous 3.7%

CPI month on month: 0.2% against expected 0.4%

CPI core year on year: 2.9% against expect 3.0% and previous 3.1%

RPI year on year: 5.1% against expected 5.0% and previous 5.3%

RPI month on month: 0.4% against expected 0.3% and previous 1.0%

http://www.dailyfx.com/real_time_news/#ixzz0luV8JSzg

http://www.forexfactory.com/calendar.php

Edited by Shylock

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CPI year on year: 3.4% against expected 3.5% and previous 3.7%

CPI month on month: 0.2% against expected 0.4%

CPI core year on year: 2.9% against expect 3.0% and previous 3.1%

RPI year on year: 5.1% against expected 5.0% and previous 5.3%

RPI month on month: 0.4% against expected 0.3% and previous 1.0%

I'm putting max cash into NSandI. I've missed this RPI jump but with base rates at near-zero and VAT going up, next years RPI increase (tax-free) should be better than any normal savings account.

VMR.

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I'm putting max cash into NSandI. I've missed this RPI jump but with base rates at near-zero and VAT going up, next years RPI increase (tax-free) should be better than any normal savings account.

VMR.

I know nothing about saving or investing, other than leaving it all in my building society account due to the appalling rates Nationwide are offering me to stop me having access to it at short notice

Where is the catch with NS and I? 5%+ is unheard of in high street savings accounts

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Should be awards for this sort of reporting.

http://www.breakingnews.ie/business/prices-fall-in-uk-461695.html

Prices fall in UK

15/06/2010 - 09:35:13

The Consumer Prices Index (CPI) in the UK fell to 3.4% in May from 3.7% in April, official figures showed today.

Read more: http://www.breakingnews.ie/business/prices-fall-in-uk-461695.html#ixzz0quT6cj9p

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I know nothing about saving or investing, other than leaving it all in my building society account due to the appalling rates Nationwide are offering me to stop me having access to it at short notice

Where is the catch with NS and I? 5%+ is unheard of in high street savings accounts

It's a basic 1% + RPI change in the time you've held your certificates (one year plus and if RPI is negative it's still the basic 1%) Doesn't tie it up as much as you'd think despite being 3 and 5yr terms, you can take it out after a year with a slightly lower basic interest rate. There's a limit of 30k you could invest right now (15k in each issue).

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It says here

http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/

that the difference between RPI and CPI are housing costs - RPI has housing costs, CPI doesn't. Would falling house prices lead to higher RPI?

At first glance, this is obviously wrong, RPI would fall if the actual price of a house falls, but it doesn't have that much effect.

It's the mortgage interest payments and council tax that matter so any rise in these would cause a rise in RPI.

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It's the mortgage interest payments and council tax that matter so any rise in these would cause a rise in RPI.

That's what I was thinking.

Here's the BBC

http://news.bbc.co.uk/1/hi/business/10316495.stm

UK inflation fell to 3.4% in May from 3.7% in April, but remains well ahead of the Bank of England's 2% target.

The fall is bigger than the 3.5% analysts' forecast, and could mean that April's 17-month high marks a peak.

The Office of National Statistics said the drop was helped by lower food prices, as well as slower rises in the price of petrol, alcohol and tobacco.

The retail prices index - a measure widely used in pay talks - rose by 5.1% in May from 5.4% the ONS said.

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I know nothing about saving or investing, other than leaving it all in my building society account due to the appalling rates Nationwide are offering me to stop me having access to it at short notice

Where is the catch with NS and I? 5%+ is unheard of in high street savings accounts

Catch 1 is that if you withdraw within a year, you get no interest

Catch 2 is that you are limited to £15K per issue. However, there are two issues and you can use wifes/kids/dogs name (just kidding about the dog). So for 2 adults and 2 kids, you can put away £120K at the moment then more when the next issues comes out.

Catch 3 is RPI may fall to zero or go negative and you will only get the minimum 1% tax-free.

VMR.

p.s. The NSI index linked bonds are completely tax-free.

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It's a basic 1% + RPI change in the time you've held your certificates (one year plus and if RPI is negative it's still the basic 1%) Doesn't tie it up as much as you'd think despite being 3 and 5yr terms, you can take it out after a year with a slightly lower basic interest rate. There's a limit of 30k you could invest right now (15k in each issue).

It isn't the CHANGE in RPI over the time you have them. This is incorrect. It tracks RPI over the time you have them.

For instance, your statement suggests that if you invest now when RPI is circa 5% and RPI is 2% when your bond matures that you won't get any index linking (the change being -3%). What you get (roughly as they use 2 months previous figures as your starting date) is an average of the RPI over the period (eg: in example if the curve between 5% and 2% was smooth it would be roughly 3.5%).

Your statement is a common misconception of these bonds.

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I know nothing about saving or investing, other than leaving it all in my building society account due to the appalling rates Nationwide are offering me to stop me having access to it at short notice

Where is the catch with NS and I? 5%+ is unheard of in high street savings accounts

They're tax-free too, ideal for higher rate tax payers.

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It isn't the CHANGE in RPI over the time you have them. This is incorrect. It tracks RPI over the time you have them.

For instance, your statement suggests that if you invest now when RPI is circa 5% and RPI is 2% when your bond matures that you won't get any index linking (the change being -3%). What you get (roughly as they use 2 months previous figures as your starting date) is an average of the RPI over the period (eg: in example if the curve between 5% and 2% was smooth it would be roughly 3.5%).

Your statement is a common misconception of these bonds.

You are correct; I did hold that misconception.

Edited by rented

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Catch 1 is that if you withdraw within a year, you get no interest

Catch 2 is that you are limited to £15K per issue. However, there are two issues and you can use wifes/kids/dogs name (just kidding about the dog). So for 2 adults and 2 kids, you can put away £120K at the moment then more when the next issues comes out.

Catch 3 is RPI may fall to zero or go negative and you will only get the minimum 1% tax-free.

VMR.

p.s. The NSI index linked bonds are completely tax-free.

Presumably another catch is if the UK govt defaults on its debt? Not that I think that is going to happen

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You are correct; I did hold that misconception.

May I just clear this up - the RPI (Retail Prices Index) is an index. For May it is 223.6. It is not a percentage.

Index linked bonds work by dividing the RPI relating to the end by the RPI relating to the start (as specified in the rules).

eg say RPI goes from 200 to 300 overall then you get back 50% more than you invested (plus bonuses).

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May I just clear this up - the RPI (Retail Prices Index) is an index. For May it is 223.6. It is not a percentage.

Index linked bonds work by dividing the RPI relating to the end by the RPI relating to the start (as specified in the rules).

eg say RPI goes from 200 to 300 overall then you get back 50% more than you invested (plus bonuses).

+1

I think the problems come about because people say things like "RPI is 5.1%" as shorthand for "the change in the RPI over the last 12 months is 5.1%"

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  • 259 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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