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Cost Of Living Rockets - 'but Not Really'

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http://uk.biz.yahoo.com/18032008/140/cost-...ets-really.html

Tuesday March 18, 11:47 AM

Cost Of Living Rockets - 'But Not Really'

By Sky News

| | |

The annual rate of inflation has shot up 0.3% to 2.5% after huge increases in gas and electricity prices.
It is the biggest rise in the Consumer Prices Index (CPI) since May 2007.
But the Office for National Statistics (ONS) said it was largely due to a change in the way it calculates inflation.
The ONS said it would have remained at 2.2% last month - just above the 2% target
- if it had used the old method.
Price hikes are now taken into account from the day they are introduced. Previously they were phased in over a four-month period.

Phew, there I was thnking it was 2.5% or something.

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To be fair it is partly because they changed the methodology, but that's because the methodology was rubbish and needed changing. They can only claim that inflation would have been lower if they admit that inflation in previous months should have been higher to offset this!

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To be fair it is partly because they changed the methodology, but that's because the methodology was rubbish and needed changing. They can only claim that inflation would have been lower if they admit that inflation in previous months should have been higher to offset this!

Exactly. What they are really saying is that they were understating it before, and that somehow they were right and this is wrong. :blink:

Of course it does mean that inflation, when it does disappear, will disappear much quicker, so maybe they are looking to priduce these figures now, dismiss them and wait for the inflationary "blip" to go away. Not saying it will or it won't, just trying to attribute some paranoia. :)

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I also noticed that they're now mentioning "core" inflation just like the US do - ie exclude everything that goes up in price!

BBC: UK consumer inflation hits 2.5%

But core inflation, which excludes oil and food, fell to 1.2% in February, the lowest level since August 2006.

How long will it be before the inflation target uses Core rather than CPI?

Regards,

crude.

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The ONS said it would have remained at 2.2% last month - just above the 2% target
- if it had used the old method.
Price hikes are now taken into account from the day they are introduced. Previously they were phased in over a four-month period.

Phew, there I was thnking it was 2.5% or something.

So have they taken that into account? or put it aside and missed out on a full 4 months? ie 3 months of figure some how dissappeared?

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I also noticed that they're now mentioning "core" inflation just like the US do - ie exclude everything that goes up in price!

BBC: UK consumer inflation hits 2.5%

How long will it be before the inflation target uses Core rather than CPI?

Regards,

crude.

Are MPs' pensions linked to:

a: - Core Inflation (1.2%)

b: - CPI (2.5%)

c: - RPI (4.1%)

Yes you are correct the is answer: C.

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Price hikes are now taken into account from the day they are introduced. Previously they were phased in over a four-month period.[/indent]

Good thing they changed that - I was about to ring the Council and tell them I'd be phasing their bill increase in over 4 months, as per Government policy.

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But the Office for National Statistics (ONS) said it was largely due to a change in the way it calculates inflation.

Yes. Excluding anything at all to do with the cost of living. Genius! :P

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http://uk.biz.yahoo.com/18032008/140/cost-...ets-really.html

Tuesday March 18, 11:47 AM

Cost Of Living Rockets - 'But Not Really'

By Sky News

| | |

The annual rate of inflation has shot up 0.3% to 2.5% after huge increases in gas and electricity prices.
It is the biggest rise in the Consumer Prices Index (CPI) since May 2007.
But the Office for National Statistics (ONS) said it was largely due to a change in the way it calculates inflation.
The ONS said it would have remained at 2.2% last month - just above the 2% target
- if it had used the old method.
Price hikes are now taken into account from the day they are introduced. Previously they were phased in over a four-month period.

Phew, there I was thnking it was 2.5% or something.

Hold on, my council tax has gone up 4%,

My fuel station has put up prices, yet again, over inflation.

My food bill is soring, even for basic food like salads, and has gone over inflation.

My car tax will be going up massively over inflation.

My gas bill has gone up 15%

But i'm glad inflation is only 2.2%, phew, for a moment I though the government was pulling a fast one.

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Hold on, my council tax has gone up 4%,

My fuel station has put up prices, yet again, over inflation.

My food bill is soring, even for basic food like salads, and has gone over inflation.

My car tax will be going up massively over inflation.

My gas bill has gone up 15%

But i'm glad inflation is only 2.2%, phew, for a moment I though the government was pulling a fast one.

Sadly for poor people such as yourself, for whom the essentials of life form the major part of your expenditure, this country is getting very expensive.

The moral of the story is that you need to have a large disposable income that you can spend on non-essentials that are not going up in price. For instance the price of a lap dance hasn't gone up in years and hookers have got cheaper.

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  • 296 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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