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bobthe~

Muffins Now In Rpi Basket Of Goods

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In case we had all forgotten due to the minor news stories going on, it is the time that the ONS swindle us out of proper inflation figures.

Although I think getting rid of the 35mm camera is probably fair doos

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BBC News link

In case we had all forgotten due to the minor news stories going on, it is the time that the ONS swindle us out of proper inflation figures.

Although I think getting rid of the 35mm camera is probably fair doos

Its a scam, last nude beach I went to and there wasnt a muffin in sight!

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Ha, memory sticks added, is there anything more deflationary than portable memory sticks?

The only surprise here is that they left fuel in the figures.

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Probably because as the 35mm camera becomes a niche item (i.e. no longer mass-manufactured), used by serious photographers only, the cost of them goes up. Not what Gordie wants in the inflation figures...

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"Fruit smoothies are included as the emerging market of healthy soft drinks continues to rise in supermarkets," said the ONS.

what about house prices - the emerging market for house prices has been going on for oooh the last 7 years :angry:

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Ha, memory sticks added, is there anything more deflationary than portable memory sticks?

The only surprise here is that they left fuel in the figures.

Exactly, putting a fixed size of memory stick in will end up with the price halving (at least) every 6 months. Good to keep those inflation figures low... ;)

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In case we had all forgotten due to the minor news stories going on, it is the time that the ONS swindle us out of proper inflation figures.

Although I think getting rid of the 35mm camera is probably fair doos

Have they included house prices yet? They are falling after all....

Oopps, sorry - houses aren't a fundamental cost of living. Never have been.....

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Ha, memory sticks added, is there anything more deflationary than portable memory sticks?

It's ridiculous. There shouldn't be any high tech items in the basket at all. Either that or our CPI target should be seriously negative. You can't offset inflation against technological progress and pretend that the result is still inflation.

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...wonder if petrol, bread and beer are in the basket...?......does anyone have a breakdown ...?..... <_<

The list is here in Annex A: http://www.statistics.gov.uk/articles/nojo...rticle_2008.pdf

I think the trick is not what is in the basket but what weighting each group is given. I'm not sure but I think the weighting is changed as and when the ONS feels it is necessary rather than annually.

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...this could be useful...

The personal inflation calculator is

based on the RPI, the long-standing

and familiar domestic measure of

inflation, whose uses include indexation

of pension payments, state benefits and

private contracts. The RPI covers the full

range of goods and services bought by the

vast majority of households. This includes

the essentials, such as food, housing and

heating, as well as discretionary purchases,

such as audio-visual equipment and

holidays

http://www.statistics.gov.uk/elmr/01_07/do...01_07Powell.pdf

...... <_<

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It's ridiculous. There shouldn't be any high tech items in the basket at all.

Why not?

The items in the inflation index baskets are arrived at by market research to determine what people are spending their money on, and memory sticks are obviously one of the many things that consumers actually buy in 2008.

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Why not?

The items in the inflation index baskets are arrived at by market research to determine what people are spending their money on, and memory sticks are obviously one of the many things that consumers actually buy in 2008.

Because it bears absolutely no relation to inflation.

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Why not?

The items in the inflation index baskets are arrived at by market research to determine what people are spending their money on, and memory sticks are obviously one of the many things that consumers actually buy in 2008.

I'm hoping you are being facetious with that post...

It is well known and documented that the price of electronic items (of a given specification) reduces very rapidly over time. This is due to the cost of R&D and the initial high tooling costs being passed on to the 'early adopters' and also the introduction of competition 3-6 months down the line.

For example, if I have £50 to buy a memory stick now I can buy a 32Gb stick. In 6 months I can either buy the same memory stick for £30, or spend my £50 on the 64Gb memory stick that will become available.

In the above example the ONS statisticians would be detecting a fall in price that reduces the headline inflation figure. In fact, these kind of price falls in the world of consumer electronics have been taking place since around 1980.

There is no place for items such as a memory stick in any inflation calculation, if you want it to be a serious indicator of the inflation consumers feel. Anyone with even a basic understanding of consumer electronics (or even 'Moore's law' - look it up) would know this.

Edited by redalert

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...meant to say ...the Chancellor does come across a bit like Muffin ..the Mule.... <_<

Excellent! Just what we need, another donkey thread...

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I'm hoping you are being facetious with that post...

It is well known and documented that the price of electronic items (of a given specification) reduces very rapidly over time. This is due to the cost of R&D and the initial high tooling costs being passed on to the 'early adopters' and also the introduction of competition 3-6 months down the line.

For example, if I have £50 to buy a memory stick now I can buy a 32Gb stick. In 6 months I can either buy the same memory stick for £30, or spend my £50 on the 64Gb memory stick that will become available.

In the above example the ONS statisticians would be detecting a fall in price that reduces the headline inflation figure. In fact, these kind of price falls in the world of consumer electronics have been taking place since around 1980.

There is no place for items such as a memory stick in any inflation calculation, if you want it to be a serious indicator of the inflation consumers feel. Anyone with even a basic understanding of consumer electronics (or even 'Moore's law' - look it up) would know this.

The only criteria for inclusion in the basket is what consumers are actually spending their money on. That's the way it is and also the way it should be.

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The only criteria for inclusion in the basket is what consumers are actually spending their money on. That's the way it is and also the way it should be.

No, the inclusion of memory sticks, iPods and other items that naturally depreciate quickly makes a mockery of the whole thing. Either the ONS do not understand (which I find hard to believe) or this is deliberate.

If "the basket is what consumers are actually spending their money on" where the f uck are council tax, rent/mortgage costs then?

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No, the inclusion of memory sticks, iPods and other items that naturally depreciate quickly makes a mockery of the whole thing. Either the ONS do not understand (which I find hard to believe) or this is deliberate.

If "the basket is what consumers are actually spending their money on" where the f uck are council tax, rent/mortgage costs then?

In the RPI

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In the RPI

But you just told me that the CPI basket was what people were spending their money on? Do you mean CPI is "non-essentials that people are spending their money on"?

If you cannot see why consumer electronics should not be part of an inflation index I'm afraid I can't help you.

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But you just told me that the CPI basket was what people were spending their money on? Do you mean CPI is "non-essentials that people are spending their money on"?

If you cannot see why consumer electronics should not be part of an inflation index I'm afraid I can't help you.

What you're arguing for is an artificial measure of inflation that only ever gallops upwards.

In reality people spend money on items that are both increasing and decreasing in price, and any sensible index will reflect this reality. Consumer electronics are a deflationary fact of life in the current world, and should be reflected in the indices in just the same way that inflationary items like petrol should also be included. If you can't grasp this then sadly it's me that can't help you.

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  • 293 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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