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http://news.bbc.co.uk/1/hi/business/4688826.stm

...childcare costs have risen significantly above inflation in the last year, with Scotland up by 8% and Wales up by 7%.

The cost of a full-time place in England has risen 27% since 2000, it adds. Charges are highest in London.

And, for those that don't trust the BBC, from the horse's mouth:

http://www.daycaretrust.org.uk/mod.php?mod...=1001&page_id=7

According to Daycare Trusts 2005 Childcare Costs Survey the typical cost of a full-time nursery place for a child under two is £141 a week in England, that's over £7300 a year; a rise of nearly 5.2% since 2003 - three and a quarter times the rate of inflation.

Hmm, not sure 5.2% over two years is really 3.25x inflation.

Childcare must surely be a major component in the CPI basket, but I'd guess it hits the index in September when the new school year starts and prices are updated.

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Childcare must surely be a major component in the CPI basket

Haven’t you heard that they are going to remove childcare from the CPI basket – and replace it with MP3 players – it’s felt that more average people worry about the cost of there music players than the minority of very few wealthy people that can afford childcare (sarcastic mode off)

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Haven’t you heard that they are going to remove childcare from the CPI basket – and replace it with MP3 players – it’s felt that more average people worry about the cost of there music players than the minority of very few wealthy people that can afford childcare (sarcastic mode off)

I had a look at what is used to measure CPI. Seems fair enough to me to tell you the truth. House prices have more to do with our unhealthy obsession with property ownership I would say. I note that rent is included in the CPI computation. Is that right or did it get removed?

FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals and snacks)

HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

APPAREL (men's shirts and sweaters, women's dresses, jewelry)

TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)

MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)

RECREATION (televisions, pets and pet products, sports equipment, admissions);

EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);

OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

Edited by jellybean

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Hmm, not sure 5.2% over two years is really 3.25x inflation.

Probably on average 5.2% per year. I've seen 27% inflation in 5 years thrown around!!

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Seems fair enough to me to tell you the truth.

Its things like TV’s that I don’t get – do they

1: track a 28-inch TV – i.e. each year it gets cheaper until they change it to a flat panel TV as a new object

Or

2: track the average cost of the average TV – i.e. 50% of people have a 28 inch TV and 20% of people have a plasma and 30% of people have a flat panel

Obviously with 1 things will always be getting cheaper but 2 is a fair way of getting what people actually pay for the same object

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Its things like TV’s that I don’t get – do they

1: track a 28-inch TV – i.e. each year it gets cheaper until they change it to a flat panel TV as a new object

Or

2: track the average cost of the average TV – i.e. 50% of people have a 28 inch TV and 20% of people have a plasma and 30% of people have a flat panel

Obviously with 1 things will always be getting cheaper but 2 is a fair way of getting what people actually pay for the same object

You have to be careful about the way they fudge the figures. Take computers. A fair way of tracking inflation would be to compare the price of a typical home computer bought 10 years ago to the one you would typically buy today and work out the price change. But this is not what happens. Standard computers today have DVD burners, a feature which was unheard of (or at least fantstically expensive) 10 years ago. The ONS, when calculating inflation take this new feature into account and hence state that prices are dropping. In fairness you cannot buy a like-for-like computer today compared to 1996. You may want to do this if, for example you only need email, word processing and to surf the net, but you must now buy the higher spec machine.

Same thing when you compare a Fiesta from 96 to todays model.

JP.

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You have to be careful about the way they fudge the figures. Take computers. A fair way of tracking inflation would be to compare the price of a typical home computer bought 10 years ago to the one you would typically buy today and work out the price change.

That’s what I was trying to describe with TV’s

So how many objects are there like this on the CPI and what percentage do they represent

So we have

TV’s

DVD’s

MP3 players

Computers

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Haven't you heard that they are going to remove childcare from the CPI basket – and replace it with MP3 players – it's felt that more average people worry about the cost of there music players than the minority of very few wealthy people that can afford childcare (sarcastic mode off)

Yes, Child Carers are being partially being replaced by MP3 players. The MP3 players keeps the child occupied for the duration of the adult outing. This therefore means the weighting of childcare reduces.

The price of childcare is hedonically adjusted, so the rise is made to look smaller. This is because Child Carers are far more effecient.

I hope this explains this rise in Child Care costs.

:lol:

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I had a look at what is used to measure CPI. Seems fair enough to me to tell you the truth. House prices have more to do with our unhealthy obsession with property ownership I would say. I note that rent is included in the CPI computation. Is that right or did it get removed?

FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals and snacks)

HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

APPAREL (men's shirts and sweaters, women's dresses, jewelry)

TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)

MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)

RECREATION (televisions, pets and pet products, sports equipment, admissions);

EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);

OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

I notice gas, electricity, water and council tax are nowhere to be seen on that list. How convenient for Gordon Brown :rolleyes:

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I notice gas, electricity, water and council tax are nowhere to be seen on that list. How convenient for Gordon Brown :rolleyes:

Perhaps it would be best to do some research before posting?

You can find the weightings and indexes for the CPI basket of goods here.

If you want to see historic changes to the weights, look here.

If you're really interested in hedonics or other stastical guff, read this.

Taxes are excluded from CPI.

T&T

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Perhaps it would be best to do some research before posting?

You can find the weightings and indexes for the CPI basket of goods here.

If you want to see historic changes to the weights, look here.

If you're really interested in hedonics or other stastical guff, read this.

Taxes are excluded from CPI.

T&T

Apologies, I thought the list that I quoted was comprehensive.

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Its things like TV’s that I don’t get – do they

1: track a 28-inch TV – i.e. each year it gets cheaper until they change it to a flat panel TV as a new object

Or

2: track the average cost of the average TV – i.e. 50% of people have a 28 inch TV and 20% of people have a plasma and 30% of people have a flat panel

Obviously with 1 things will always be getting cheaper but 2 is a fair way of getting what people actually pay for the same object

Google 'hedonic adjustment'.

Its a scam.

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Haven’t you heard that they are going to remove childcare from the CPI basket – and replace it with MP3 players – it’s felt that more average people worry about the cost of there music players than the minority of very few wealthy people that can afford childcare (sarcastic mode off)

No, no, you misread the report completely. When they said they were going to replace childcare with MP3 players, they were talking about a physical substitution. Just strap one on to the little tacker in the morning and let him/her listen to it all day :lol: .

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Just strap one on to the little tacker in the morning and let him/her listen to it all day :lol: .

The government could produce a free mp3 download – repeating “when you are old enough you will buy a house and be happy, never mind how much in debt you get in to” and then just strap the player to their poor little faces

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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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