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RichM

Low Inflation And The Cost Of Life

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Yes, the council tax conundrum is a tricky one......You see increased taxes are not included in the inflation stats as they are deemed to be merely a transfer of spending by the individual taxpayer to spending by the government.

In the case of recent council tax rises however, taxes were raised primarily because of rise the cost of employing public sector workers which made the service they provided dearer......which is obviously inflationary..........

So if taxes are raised for this reason rather than just to redistribute income (transfer payments) then they should surely be included in the inflation stats................

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Has anyone actually come up with an index and done some tracking on the REAL cost of living/takehome pay before neccessary spending v neccessary spending and the inflation thereto.

When they don't include the direct costs (ie. Council Tax), there has got to be something wrong. I don't quite see how I am benefited by greater council tax. I mean what precisely do they provide to a single working girl with no kids and not living in council housing that would justify the greater cost as a personal benefit of greater spending?

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Has anyone actually come up with an index and done some tracking on the REAL cost of living/takehome pay before neccessary spending v neccessary spending and the inflation thereto.

Real index - a good idea for revealing the truth behind phony tony's govt. And if someone can put together a decent press release this is the sort of item the journalists will pick up on.

fuel: gas, electric

Council tax

Water rates

Food

Clothing

Transport

TV licence

entertainment - cost of a cinema ticket and pint?

Contents insurance

What else ? (Would you include rent/mortgage? Buildings insurance? )

Edited by SarahBell

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Interesting article and very true. Those that already own their houses who bought before 2001 say, are in a nice position. They have cheap mortgages due to a fall in interest rates and the items they fill their home with have never been cheaper. Holdidays and air travel have never been cheaper as have new cars etc.

Those out of work on Income Support or Job Seakers Allowance have been hit the hardest under this government I feel. Benefits are tied to the low inflation rate so annual increases do not keep pace with the true cost of living - above inflation council tax, gas and electricity rises. The poor are being subjected to higher inflation than the rest of us as benefits only cover day-to-day living expenses (essentials which are becoming more expensive) rather that the purchase of luxury items which they can rarely afford (non-essentials which are becoming cheaper).

Sorry CATFLAP. I don't agree. The VERY poor ie. people on benefits with no other form of income will often get Council Houses. The rest of us live as best we can in insecure housing situations. Those who have been hit as hardest as far as I am concerned are particularly low income earners. They have to pay for transport and the essentials of working (ie. decent clothes) but unless they have kids or have slept rough get none of the benefits available. Try working for 900 take home pay a week, paying 125 per week rent with no housing benefit because you work more than 16 hours a week, no council tax relief, and then finding transport (a travel card cost 90-100 in London a month) and clothe yourself as required for work as well.

Its not me, but the working poor fall under every net. They would be better off on benefits and a lot of them know it. I don't know whether to respect them highly for their genuine dignity or laugh at them for bothering.

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Those out of work on Income Support or Job Seakers Allowance have been hit the hardest under this government I feel. Benefits are tied to the low inflation rate so annual increases do not keep pace with the true cost of living - above inflation council tax, gas and electricity rises. The poor are being subjected to higher inflation than the rest of us as benefits only cover day-to-day living expenses (essentials which are becoming more expensive) rather that the purchase of luxury items which they can rarely afford (non-essentials which are becoming cheaper).

I have to disagree strongly with that.

Those on income support don't actually pay council tax. (actually that would be far to simple, rather we employ civil servants to credit it to them via council tax benefit) and have not been subjected over to a 100% rise in housing costs, while the price of tescos jeans & dvd players has made their lifes much more comfortable.

Let us not forget too, that while under the tories, we had 3 millions unemplyed. We now have 1 million unemployed and 2.7 million on the sick, recieving extra benefits.

It's young working people that are seeing their standard of living drop through the floor.

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Working does give you self esteem and self respect though, but when the system is wrong or against you who can blame people for not wanting to work 40 hours to be only £20 to £40 better off each week?

Or continually drop mini-chavs to increase their income by 20 or 40 a week & get bigger free houses.

Nope cant blame em really - only blame to be laid is with tonys cronies, who incidentally seem to be having their mortgages paid off by the mafia.

Edited by Flick

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Hi,

Inflation targeting has been discredited under the current chancellor. You can't make it the central plank of monetary policy then fudge and manipulate it until it is meaningless. Demand side monetary policy became discredited in the 60's-70's, supply side monetary policy in the 80's-90's, the experiment in inflation targeting will also be consigned to the trash can of experiments sometime soon, markets pushed the other two forms of policy to the brink until breakdown, I guess asset inflation and debt will be the breaking point of inflation targeting monetary policy, in hindsight.

Boomer

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Try working for 900 take home pay a week, paying 125 per week rent with no housing benefit because you work more than 16 hours a week, no council tax relief, and then finding transport (a travel card cost 90-100 in London a month) and clothe yourself as required for work as well.

Is there a typo here, Elizabeth? I would consider 900GBP take home pay a week a small fortune.

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Inflation targeting has been discredited under the current chancellor. You can't make it the central plank of monetary policy then fudge and manipulate it until it is meaningless. Demand side monetary policy became discredited in the 60's-70's, supply side monetary policy in the 80's-90's, the experiment in inflation targeting will also be consigned to the trash can of experiments sometime soon, markets pushed the other two forms of policy to the brink until breakdown, I guess asset inflation and debt will be the breaking point of inflation targeting monetary policy, in hindsight.

Absolutley. Perhaps, just perhaps, there isn't a neat nobrain formulea and the Chancellor of the Exchequer should actually manage the economy.

The failure this time around was to stick with inflation targetting in the face of global deflationary pressure (China & cheap labour imports) while ignoring the debt bubble.

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Another rentier state....

Inflation in Zimbabwe Soars to 782 Pct.

http://biz.yahoo.com/ap/060311/zimbabwe_economy.html?.v=2

- The public and private sector - about 20 percent of the work force -- earn an average of Z$5 million to Z$6 million ($50-$60) a month.

- an average family of five needing Zimbabwean $9 million, or USD90 at the official exchange rate, just to meet basic food needs.

- production, exports went into free fall after Mugabe ordered seizure of 5,000 farms in February 2000.

- soaring rentals were a significant factor in the cost of living.

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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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