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Cpi Rises To 2.4%

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Not that bad at all, a fine month of figure massaging!

"The largest downward effect on the CPI annual rate came from recreation and culture, due to price decreases on pre-recorded DVDs, videos and CDs, reduced theatre and live music admission costs and cheaper package holidays to some Mediterranean destinations."

That's ok then, not sure I noticed looking in HMV yesterday but if you say so.

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Reduced live music admission costs???? Is this index for real?

The cost of living is soaring yet our inflation measure still shows only a pitiful rise.

Edited by simon99

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Oh that's alright then! For a minute I thought that essentials were going up in price. But seeing as it's being offset by DVDs then I'll just have to change my spending habits and buy DVDs rather than heating my house in the winter. :blink:

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:blink:  £63 for a U2 concert ticket.....reduced?  :lol:

Reduced live music admission costs,

Mervyn and his pals at the ONS went down the dog and duck and got cheap admission to a Chas and Dave tribure band or some such - warning read the trouser legs carefully. :lol:

cockney1.jpg

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yes, house prices aren't in the index for some reason... but i'm sure they will be once they go y-o-y negative.

They are, kind of. OER (Owner Equivalent Rent) is included. This is the equivalent price at which you'd have to rent your house for. So it's a complete sham as this i not reflective of the massive HPI over the years.

Also the way that items such as TV's are caluclated is disgusting (read this in Money Week)... if you replace your old TV with a new one but at the same price, the govt calculate this as a fall in price because the new one will have a flat screen, surround sound, etc. So their argument is that the value of the TV is higher but the price is the same. So to reflect this they manipulate the price down for the figures.

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These figures only reflect last years oil prices at $40 a barrel, wait til the $70 start filtering through, anyone with a variable rate mortgage better start running for cover now.

Why haven't they filtered through yet? What sort of lead time is there?

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Hmm the live music thing...

Is this the hedonics effect.

Someone mentioned that if the price of beef goes up, they assume everyone will switch to chicken.

Perhaps if U2 tickets go up, everyone will switch to Val Doonican?

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Quote from the BBC

"ING Financial economist James Knightley added: "Although the headline rate did rise to 2.4% it really is largely energy-related because when you strip out volatile energy, food, alcohol and tobacco to just get the core number, inflation has actually slipped a bit to 1.7%.""

When you strip out food?!!? I'd like to see him strip out food for a month and see how well he does, what an absolute cretin. No sorry that's an insult to cretins!

Edited by mustrum_ridcully

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From http://www.statistics.gov.uk/CCI/nugget.asp?ID=19

The largest downward effect on the CPI annual rate came from recreation and culture, due to price decreases on pre-recorded DVDs, videos and CDs, reduced theatre and live music admission costs and cheaper package holidays to some Mediterranean destinations.

How???

Has anyone noticed cheaper dvds or cds, at best they havent gone up in price. Unless of course they have decided to count jersey online prices in the CPI basket.

Live music admission, right??? Anyone see just how much tickets to glastonbury, v festival cost. Maybe they counted the freebie live8 tickets and averaged in for good effect.

Cheaper packaged holidays to some regional destinations, whoopdedoo what does it all mean Basil>? Really, what impact would this have weighed against the staggering increase in fuel costs over the same period. And surely offset by fuel surcharges for long haul flights anyway.

Whats the weighting of each element in the CPI basket, would be interesting to see.

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But as below target inflation did not stop the MPC from raising interest rates five times in 2003/04, above target inflation should not preclude more rate cuts. In any case, inflation is unlikely to stay high for too long as retailers will be reluctant to raise prices if demand remains weak. Accordingly, I reckon that rates will be cut by 0.25% in November and will fall to 3.5% next year.

Well, the above is what Roger Bootle said after the latest "hold" by the BOE.!

Be interesting to see what happens!

Lou

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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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