Guest_James Toney_* Posted October 16, 2012 Share Posted October 16, 2012 on sky news now, going to have to do some QE to control it..?? Quote Link to comment Share on other sites More sharing options...
Errol Posted October 16, 2012 Share Posted October 16, 2012 This is inflation excluding fuel, train tickets, basic food stuffs etc I take it? Quote Link to comment Share on other sites More sharing options...
albimac Posted October 16, 2012 Share Posted October 16, 2012 "You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time"Abraham Lincoln, (attributed) 16th president of US (1809 - 1865) Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted October 16, 2012 Share Posted October 16, 2012 LOL, this is great, the popualtion neeed to wake up and understand how and by whom they are being manipulated and screwed over. Some are reeling from the recent price rises, maybe they will do some more thinking about the whole situation. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 16, 2012 Share Posted October 16, 2012 Last year's utility bill rises fell out of the calcs this month. In the CPI for example, annual electricity inflation dropped from 7% in August to -0.5% in September. Gas dropped from 13.4% to 0.4%. We know we have a fresh round of utility increases on the way over the next few months. Also annual food inflation currently stands at 1.9% in both CPI and RPI. That will surely rise too. ...and it's little wonder that the ONS is consulting on changing the way RPI is calculated. Annual clothing inflation as measured by CPI is -0.4% whereas RPI has it at 6.1%. Quote Link to comment Share on other sites More sharing options...
Guest_FaFa!_* Posted October 16, 2012 Share Posted October 16, 2012 Last year's utility bill rises fell out of the calcs this month. In the CPI for example, annual electricity inflation dropped from 7% in August to -0.5% in September. Gas dropped from 13.4% to 0.4%. We know we have a fresh round of utility increases on the way over the next few months. Also annual food inflation currently stands at 1.9% in both CPI and RPI. That will surely rise too. ...and it's little wonder that the ONS is consulting on changing the way RPI is calculated. Annual clothing inflation as measured by CPI is -0.4% whereas RPI has it at 6.1%. Thanks for that, very informative. Do you have a link to the break down? Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted October 16, 2012 Share Posted October 16, 2012 Thanks for that, very informative. Do you have a link to the break down? If you go to this page you can download an Excel spreadsheet (the CPI and RPI Reference Tables link) that gives a lot of current and historical detail on the consumer price measures. This spreadsheet is made available every month. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted October 16, 2012 Share Posted October 16, 2012 No need to raise interest rates now... Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted October 16, 2012 Share Posted October 16, 2012 Thank god prices are finally going back down. Quote Link to comment Share on other sites More sharing options...
Guest_FaFa!_* Posted October 16, 2012 Share Posted October 16, 2012 If you go to this page you can download an Excel spreadsheet (the CPI and RPI Reference Tables link) that gives a lot of current and historical detail on the consumer price measures. This spreadsheet is made available every month. Many thanks Quote Link to comment Share on other sites More sharing options...
@contradevian Posted October 16, 2012 Share Posted October 16, 2012 Thank god prices are finally going back down. Quote Link to comment Share on other sites More sharing options...
Hail the Tripod Posted October 16, 2012 Share Posted October 16, 2012 This is inflation excluding fuel, train tickets, basic food stuffs etc I take it? Consumer Price Inflation isn't particularly meaningful when judging how far your salary has fallen in value. Even ignoring the understating effects of hedonic and substitution adjustments; taxes and housing are excluded, and they probably consume more than half you salary. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 16, 2012 Share Posted October 16, 2012 (edited) I picked up that the RPI had gone from 243.0 to 244.2, a half point increase MOM and 2.6% annual, as I use this for my NS and I investment calculations. The fact that September's 2011 horrendous rise in inflation drops out is masking the fact that inflation is on the rise again. The MPCs fan charts promised a massive undershoot on the 2% target by now to make up for years of overshoot, but stubbornly the overshoots continues infinitum. Edited October 16, 2012 by crashmonitor Quote Link to comment Share on other sites More sharing options...
frederico Posted October 16, 2012 Share Posted October 16, 2012 Crashmonitor which way is the headline figure going next in your view thanks Quote Link to comment Share on other sites More sharing options...
longtomsilver Posted October 16, 2012 Share Posted October 16, 2012 What's so funny? He's right isn't he Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 16, 2012 Share Posted October 16, 2012 Crashmonitor which way is the headline figure going next in your view thanks Well its got its work cut out between now and January to go much lower....September 2011 237.9, January 2012 238.0. So we need a price freeze for the next four months to keep RPI at 2.6%. Quote Link to comment Share on other sites More sharing options...
White Craw Posted October 16, 2012 Share Posted October 16, 2012 Consumer Price Inflation isn't particularly meaningful when judging how far your salary has fallen in value. Even ignoring the understating effects of hedonic and substitution adjustments; taxes and housing are excluded, and they probably consume more than half you salary. How about the Tax and Prices Index? The TPI measures how much the average person's gross income needs to change to purchase the basket, allowing for the average amount of income tax and national insurance paid on earnings http://www.mindfulmoney.co.uk/4310/investing-strategy/what-measure-should-we-be-using-for-inflation.html Quote Link to comment Share on other sites More sharing options...
R K Posted October 16, 2012 Share Posted October 16, 2012 Pretty obvious Mervs going to land it on (target) 2.0 in the month he goes. Then let Adair Turner f*ck it all up. Quote Link to comment Share on other sites More sharing options...
Little Professor Posted October 16, 2012 Share Posted October 16, 2012 September's rate is used to set the rise in benefits the following April. Sothis convenient dip has saved the government a bunch of money. Normal service will be resumed next month. The whole of the next year is going to be inflationary with fuel and food prices set to rocket. Quote Link to comment Share on other sites More sharing options...
Panda Posted October 16, 2012 Share Posted October 16, 2012 Last year's utility bill rises fell out of the calcs this month. In the CPI for example, annual electricity inflation dropped from 7% in August to -0.5% in September. Gas dropped from 13.4% to 0.4%. We know we have a fresh round of utility increases on the way over the next few months. Also annual food inflation currently stands at 1.9% in both CPI and RPI. That will surely rise too. ...and it's little wonder that the ONS is consulting on changing the way RPI is calculated. Annual clothing inflation as measured by CPI is -0.4% whereas RPI has it at 6.1%. http://www.housepricecrash.co.uk/forum/index.php?showtopic=183845 Of course, now they can keep statutory benefit/pension increases to a minimum (rates set by Sept. CPI) and use it later as an excuse for more QE to help the banks.. Its just wrong, corrupt, and utility bills all rise next month, on the flip side, not good for house prices, rising interest rates ain't coming, but rising staple costs do the same damage to house prices.... Quote Link to comment Share on other sites More sharing options...
Hail the Tripod Posted October 16, 2012 Share Posted October 16, 2012 How about the Tax and Prices Index? http://www.mindfulmoney.co.uk/4310/investing-strategy/what-measure-should-we-be-using-for-inflation.html That seems just the ticket. Can't seem to find the current level quoted anywhere though. Quote Link to comment Share on other sites More sharing options...
silver surfer Posted October 16, 2012 Share Posted October 16, 2012 Inflation IS coming down. But the problem is everyone's personal inflation rate is different, because no two people spend their money on exactly the same things. And if you're a pensioner, or struggling on minimum wage, then it's likely that your spending is heavily skewed towards basic food and heating bills. In which case you're getting mullered. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 16, 2012 Share Posted October 16, 2012 Pretty obvious Mervs going to land it on (target) 2.0 in the month he goes. Then let Adair Turner f*ck it all up. Even though the point of a target is to average it over time, not hit it in a moment of time. So instead of being circa 116.0, where we would be at compounding at 2% since 2005, we are 50% over at 123.5. Quote Link to comment Share on other sites More sharing options...
Panda Posted October 16, 2012 Share Posted October 16, 2012 Even though the point of a target is to average it over time, not hit it in a moment of time. So instead of being circa 116.0, where we would be at compounding at 2% since 2005, we are 50% over at 123.5. What has average wage growth been since 2005... Savings rates outstrip cost and i would guess wage inflation since 2005 looking at this link.. http://swanlowpark.co.uk/bank0604.jsp Quote Link to comment Share on other sites More sharing options...
koala_bear Posted October 16, 2012 Share Posted October 16, 2012 Well its got its work cut out between now and January to go much lower....September 2011 237.9, January 2012 238.0. So we need a price freeze for the next four months to keep RPI at 2.6%. The only way I could see that happening is if we get petrol price falls and /or aggressive pre Xmas price drops by retailers if stuff isn't selling. We got the 2nd last year so that would have to be more aggressive this year. On the other hand we are looking at food (at commodity level) gas and electricity price rises. Unless there is a turn for the big economic turn for the worse I can't see inflation staying this low. Quote Link to comment Share on other sites More sharing options...
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