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Us Cpi Up .4% Because Of Fuel And Energy Costs

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http://news.bbc.co.uk/1/hi/business/4798643.stm

Its a fair assumption to say that the UK and USA have had to deal with similar rises in fuel and energy costs, so why on earth does their CPI rise .4% and ours manages to fall by .1%

Seems a pretty clear indication the the Government is totally fudging our figures. Are such issues the responsility of anyone, such as the Audit Commission?

AFP

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http://news.bbc.co.uk/1/hi/business/4798643.stm

Its a fair assumption to say that the UK and USA have had to deal with similar rises in fuel and energy costs, so why on earth does their CPI rise .4% and ours manages to fall by .1%

Seems a pretty clear indication the the Government is totally fudging our figures. Are such issues the responsility of anyone, such as the Audit Commission?

AFP

WEIGHTING. Gordon manipulates the numbers to give less weight to items going up than to items that fall (iPods etc.).

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I don't think the CPI is even worth discussing

All it shows is the Governments intentions to either raise or lower IR - they will adjust/fudge it accordingly

ATM, as we've all seen, their intention is to keep headline IR numbers down and hidden inflation up

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I don't think the CPI is even worth discussing

All it shows is the Governments intentions to either raise or lower IR - they will adjust/fudge it accordingly

ATM, as we've all seen, their intention is to keep headline IR numbers down and hidden inflation up

Good article in Telegraph yesterday:

" CPI controversy fuelled by rising inflation

...Figures from the ONS have also shown that it is understating the effect of higher utility bills on the overall inflation number. The amount of weighting given to gas bills in its inflation calculations has risen by only 17pc since 2003 while the actual cost of gas bills has rocketed by 64pc...."

http://www.telegraph.co.uk/money/main.jhtm.../16/cncpi16.xml

;)

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http://news.bbc.co.uk/1/hi/business/4798643.stm

Its a fair assumption to say that the UK and USA have had to deal with similar rises in fuel and energy costs, so why on earth does their CPI rise .4% and ours manages to fall by .1%

Seems a pretty clear indication the the Government is totally fudging our figures. Are such issues the responsility of anyone, such as the Audit Commission?

AFP

A much larger percentage of our petrol price is tax than it is in the US. As this tax doesn't rise with the increases in the price of the fuel itself, the inflationary effect is much smaller here compared to the US.

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WEIGHTING. Gordon manipulates the numbers to give less weight to items going up than to items that fall (iPods etc.).

I'm wondering if Brown isn't relishing this current media mistrust of official CPI figures.

It could give him the ideal opportunity to introduce a new inflation measure [CPI was forced on him by EU etc, for he also knew it not "realistic"], which of course would take a year or so for everyone to figure out it also is junk.

Plus the introduction of a new measure, that would no doubt measure inflation higher [say 3.5%], but would give him the perfect chance to alter the inflation target [4.0%], to take account of the new methodology and the "international inflation climate"

Double confusion is a perfect Brown ruse to keep the Miracle going longer

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A much larger percentage of our petrol price is tax than it is in the US. As this tax doesn't rise with the increases in the price of the fuel itself, the inflationary effect is much smaller here compared to the US.

Would you mind taking your logic elsewhere? That kind of talk is not tolerated here.

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Good article in Telegraph yesterday:

" CPI controversy fuelled by rising inflation

...Figures from the ONS have also shown that it is understating the effect of higher utility bills on the overall inflation number. The amount of weighting given to gas bills in its inflation calculations has risen by only 17pc since 2003 while the actual cost of gas bills has rocketed by 64pc...."

http://www.telegraph.co.uk/money/main.jhtm.../16/cncpi16.xml

;)

(I've just commented on this story on another thread so I'll repost what I said there...)

Trust the Torygraph to spout such utter nonsense... Simple example: imagine we live in a world with only apples and oranges. Both cost £1, and we consume the same amount of each, so both contribute 50% to a basket of goods such as the CPI. Now we experience apple price inflation of 100%, so apples now cost £2. Even if I assume that there is no substitution from apples to oranges and we still consume equal amounts of each, then apples would now contribute 66% to the basket of prices. In other words a 100% price increase only leads to a 33% increase in the weighting used for CPI.

As we actually buy far more than two items (gas is only one of many things I have to pay for each month) and as gas price rises will lead to people using less (through better insulation, switching to alternative fuels, or simply wearing thicker jumpers) then the added contribution to the CPI basket is likely to be even more muted. In fact, I'm surprised its as high as 17%, and certainly see no evidence that the ONS is 'fiddling the books' in this case.

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Actually core CPI came in at 0.2% from last month's 0.3%. But this could mean anything from:

a- A fall from 0.34% to 0.16%

b- A fall from 0.26% to 0.24%

Take your pick. :rolleyes:

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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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