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Public Catching On To The Inflation Game

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Listening to Radio 2 and Terry Wogan on the way to work.

Somebody had written in regarding the changes to the CPI basket of goods, basically pointing out that by putting in MP3 players and the like which we know are going to keep depreciating at a rapid rate then it all helps to keep the inflation figures down.

Terry Wogan summarises;

cynical some would think...more like realistic

CD players have stopped depreciating (£7.97 in Tesco now) - better stick in the MP3 players now then.

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Listening to Radio 2 and Terry Wogan on the way to work.

Somebody had written in regarding the changes to the CPI basket of goods, basically pointing out that by putting in MP3 players and the like which we know are going to keep depreciating at a rapid rate then it all helps to keep the inflation figures down.

Terry Wogan summarises;

CD players have stopped depreciating (£7.97 in Tesco now) - better stick in the MP3 players now then.

There definitely seems to be a tide of bearish sentiment & news at the mo. I remember when I sold to rent about 3 years ago because I thought houses over priced then, & I could only find one article on the net from the guy at the university.

Look at it now. I think when it becomes as main stream as it has, you can be sure that the tide has turned & were already into the slide. Its like knowing when its time to sell investments because the public has caught on - they always wake up when its too late.

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ahh...the CPI basket of red riding hood 'goods'.

goods that are mainly for binge drinking 20 somethings and doesnt include any sort of reality whatsover to actual 'living' costs. though OOs like to hear it and love to feel the power of living in a £340k property from a simple blue collar profession.

good news everybody....prices of the new sony games consoles have fallen by an amazing 40%......

btw: gas and electricity have risn 25%, poll tax 8% and housing up to 300%..

c'mon everyone. grab those baragin mp3s now....!!!!

look !! theres britney spears....and simon cowell....wow !!!!!

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goods that are mainly for binge drinking 20 somethings

Crikey, freds, if the f*****g beer was in the CPI then we'd be sorted for higher IRs!!! The boddies is now 1.90/pint at my local, and its the cheapest beer!!!!

:o

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£1.90p is 1/3 of an hours work on min wage.

in 1986 a pint was £1.10p and min wages were about £3ph.

its more or less the same value i think.

it may have quiverred slightly, but ffs - 300% house inflation. and a house is the very biggest thing you would ever buy, so the most painful if rising above inflation.

297% above inflation. now thats high !!!!

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in 1986 a pint was £1.10p and min wages were about £3ph. its more or less the same value i think.

But these days, I suspect that far more people are on minimum wage.

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probably. i also think the numbers of unemplyed are probably the same. though a lot of it is hidden with other kinds of payments than job seekers.

life is worse.

the public has changed.

the country is eating its young.

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Either way, it's hard to convince people that inflation is low when they're struggling more and more to pay their bills each month. Reality is coming back to bite Brown and the BoE in the ass over the next few months.

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I find it interesting two chicken products are back in..... a couple of weeks ago governments were saying there is no risk from eating chicken, and people shoudlnt stop buying chicken because of bird flu, shortly you might find it hard to give chicken away.....

Why put chicken back in the basket, before a BSE type scare/threat....?

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i sick to the back teeth of this 'basket'

who uses a basket anyway. a trolley would be better at a huge out of town £5ph multi shopping centre.

parking for 100,000 cars. plus an exotic state of the art dyed water eating extravaganza called buckroo stans. featuring pizza hut, macdonalds, burgerking and for the middle clss. tgi fridays. all with the smell of chlorine water. echoes of shoppers and the hustle of plastic bags with rope handles that poluted the air when produced in their millions.

then they all fly off to europe 2 times a year.

shopping basket my spotty ****.

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I find it interesting two chicken products are back in..... a couple of weeks ago governments were saying there is no risk from eating chicken, and people shoudlnt stop buying chicken because of bird flu, shortly you might find it hard to give chicken away.....

Why put chicken back in the basket, before a BSE type scare/threat....?

Yummy. I have not had chicken in a basket for years!!!! :D

Dont they have top shelf mags in CPI figures ?

That would certainly hit the BTL W4nkers in the pocket :D

I'll get my coat.

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I find it interesting two chicken products are back in.....

Because they know some people will steer clear of Chicken! Good for the CPI (in their eyes)

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It matters because once Joe Sixpack finally realises that 'low inflation' is a fantasy, interest rates are going way up.

Brown's entire policy has been based on inflating the money supply while keeping wage inflation low: that requires convincing Joe Sixpack that inflation is low, and the policy will collapse when people start demanding 10% pay rises because they're overdrawn at the end of every month when they weren't two years ago.

Edited by MarkG

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The "Winter of Discontent" is a term used to describe the British winter of 1978–79, during which there were widespread strikes by trade unions demanding larger pay rises for their members, and the government of James Callaghan struggled to cope. The strikes were a result of the attempted enforcement of the Labour government's rule that pay rises be kept below 5%, and began in private industry before spreading to the public sector;
The Labour governments of Harold Wilson and James Callaghan had been fighting for several years against inflation, which had peaked at 26.9% in the year to August 1975, but wished to avoid large increases in unemployment. As part of the campaign to bring down inflation, the government had agreed a 'Social contract' with the Trades Union Congress which allowed for a voluntary incomes policy in which the pay rises for workers were held down to limits set by the government

Wikipedia is the business.

http://en.wikipedia.org/wiki/Winter_of_Discontent

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I'm not convinced that people will actually get pay rises, but if they don't, then they won't just sit back and watch as their standard of living drops. They may not riot in the streets, but NuLab will be out at the next election if they don't find some way to appease the masses who are getting poorer by the minute: and know it.

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But it ain't gonna happen without unions.

No unions = no leverage.

No growth in company/profits = no scope for pay rises anyway

The shareholders always come first!

_39910541_miners_strike_416gra.gif

Thats right. Unions are a necessary counterforce.

Company profits have grown to record levels - income to labour is at ALL TIME lows.

Most interesting is that if you reduce income to the level of the minimum wage, the inflation in council tax, utility bills etc.. is actually nearer 5%-6% with everything else rising at 2.5% CPI.

The minimum wage has been raised from £5 to £5.30 - by 6% for this year....

Edited by brainclamp

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I'm not convinced that people will actually get pay rises, but if they don't, then they won't just sit back and watch as their standard of living drops. They may not riot in the streets, but NuLab will be out at the next election if they don't find some way to appease the masses who are getting poorer by the minute: and know it.

Only trouble is, our govt has precided over an enormous increase in public sector jobs, people with guaranteed FSS pensions when they retire at 60. They know which side their bread is buttered and what will likely happen to their cushy numbers if they vote for anyone else but Labour.

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They know which side their bread is buttered and what will likely happen to their cushy numbers if they vote for anyone else but Labour.

Then, sooner or later, either they'll be presiding over a country where everyone who's not employed by the government is on the dole, or there'll be rioting in the streets.

People who no longer have anything because their standard of living is dropping every year will not worry too much about losing it. The implicit bargain since WWII has been 'if you do what you're told and don't make a fuss, we'll keep increasing your standard of living every year'. If the government break their side of the bargain, sooner or later the people will too.

Edited by MarkG

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Inflation is what happens when you try to get nine slices from an eight slice pizza.

Hopefully without beef toppings, corned beef has risen from about 70p to £1.20 apparently due to Argentina suspending exports, they've done that to keep down domestic prices and inflation as beef makes up nearly 5% of the CPI in that country apparently!

That's why the UK CPI has reintroduced chicken instead, it's a very strange interlinked world.

Where's the beef?

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I think it would be really useful to have two baskets - goods and services...

1) Measures items a la the chicken stuff - but is standardised to the kind of things we always need i.e. 1Kg potatoes, 2 pints Milk, 4 pk toilet roll, Kettle, Microwave etc.

2) Measures services we use i.e. Gas, Water, Electricy, for standardised amounts

Only in this fashion can any Price Index be close to truly representative.

If only newish/expensive goods are added i.e. Flat screen TV, Ipod etc. then deflation will appear ass these goods become cheaper to mass produce and are superceeded by newer models.

This way white goods, clothes and food deflation is currently balancing out the index against the rising service costs - and for the great many of us without MP3 players and Flat LCD TV's we just can't see it, because we choose not to waste our money on useless tat!

Grrrrrrrrrrrrrrrrrrr! Nulab makes my brain bleed!

- Pye (Property Speculation Ninja :ph34r: )

Edited by pyewackitt

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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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