SarahBell Posted August 19, 2011 Report Share Posted August 19, 2011 Vat is added to "luxury" items... so surely a real measure of inflation would be to have a basket of non-vated things. Quote Link to post Share on other sites
Monkey Posted August 19, 2011 Report Share Posted August 19, 2011 Vat is added to "luxury" items... so surely a real measure of inflation would be to have a basket of non-vated things. there is not much that is not a "luxury" item having it on VATable items shows what people ARE buying and how the price has changed. Fuel Alcohol Chocolate Tobacco are all "luxury" items, and its a large portion of what UK'er buy Quote Link to post Share on other sites
scottbeard Posted August 19, 2011 Report Share Posted August 19, 2011 Vat is added to "luxury" items... so surely a real measure of inflation would be to have a basket of non-vated things. Why? If luxury items increase in price that's still part of inflation. People spend money on those things! Quote Link to post Share on other sites
ken_ichikawa Posted August 19, 2011 Report Share Posted August 19, 2011 Why? If luxury items increase in price that's still part of inflation. People spend money on those things! The substitution principle in CPI means inflation targets are a survival index more than an inflation index. Quote Link to post Share on other sites
Spot Posted August 19, 2011 Report Share Posted August 19, 2011 I'm a fan of the Greggs Sausage Roll Inflation Index (GSRI) for a true measure of inflation. In 2002 they were 24p each. I bought one about a month ago and it was 62p. Wish my salary had matched that. Quote Link to post Share on other sites
Quicken Posted August 19, 2011 Report Share Posted August 19, 2011 Vat is added to "luxury" items... so surely a real measure of inflation would be to have a basket of non-vated things. That would include Gold then. Does anyone know whether precious metals are included in CPI/RPI at the moment? Quote Link to post Share on other sites
jywerhyx Posted August 19, 2011 Report Share Posted August 19, 2011 That would include Gold then. Does anyone know whether precious metals are included in CPI/RPI at the moment? Jewellery is included. Gold per se is an investment not a consumer purchase and so is not included. Quote Link to post Share on other sites
Terribad Posted August 19, 2011 Report Share Posted August 19, 2011 I'm a fan of the Greggs Sausage Roll Inflation Index (GSRI) for a true measure of inflation. In 2002 they were 24p each. I bought one about a month ago and it was 62p. Wish my salary had matched that. 52p this morning. Quote Link to post Share on other sites
zebbedee Posted August 19, 2011 Report Share Posted August 19, 2011 I'm a fan of the Greggs Sausage Roll Inflation Index (GSRI) for a true measure of inflation. In 2002 they were 24p each. I bought one about a month ago and it was 62p. Wish my salary had matched that. 62p FOR MASHED UP **** OF PIG WITH A DASH OF ANUS!!! YUK Quote Link to post Share on other sites
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