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Cpi Up To 2.5% From 2.2%

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Linky

But they are saying the rise is due to methodological changes.

UK consumer inflation reached its highest level in nine months last month, due to a new method for calculating energy bills. The Office for National Statistics said the Consumer Prices Index (CPI) hit 2.5% on an annual basis in February, up from 2.2% in January.

But without the change in methodology, the figure would have remained at 2.2%.

And if you strip out oil and food it's only 1.2%

But then if you strip out oil and food you'd be dead.

I'm slightly perplexed as to why they changed the basket to one which puts CPI up?! Normally they frig the numbers down. Maybe AD is still a bit in green in the job and they slipped one past him. :P

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Linky

But they are saying the rise is due to methodological changes.

And if you strip out oil and food it's only 1.2%

But then if you strip out oil and food you'd be dead.

I'm slightly perplexed as to why they changed the basket to one which puts CPI up?! Normally they frig the numbers down. Maybe AD is still a bit in green in the job and they slipped one past him. :P

but how can we stop oil and food deflating that is the question? Demand for food and oil is a constant and even if prices doubled people would still pay because they are essentials. BoE interest rate will have no effect on these things.

It is a very close call but I am thinking there might be another rate cut coming. The economy is looking so completely and utterly screwed I don't see how they have a choice. Apart from people on tracker mortgages (myself) a cut won't have any effect anyway so they may as well be seen to be the good guy.

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but how can we stop oil and food deflating that is the question? Demand for food and oil is a constant and even if prices doubled people would still pay because they are essentials. BoE interest rate will have no effect on these things.

It is a very close call but I am thinking there might be another rate cut coming. The economy is looking so completely and utterly screwed I don't see how they have a choice. Apart from people on tracker mortgages (myself) a cut won't have any effect anyway so they may as well be seen to be the good guy.

If interest rates were raised sterling would go up vis-a-vis the dollar and oil and food would get cheaper. That would be a good thing. It would stimulate the economy if people had more to spend on non-essential, domestically sourced goods and services. If only we didn't have this £2 trillion debt hanging round our neck... :unsure:

Why would we want to stop oil and food deflating? This seems like a good thing to me.

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Guest Bart of Darkness
Linky

And if you strip out oil and food it's only 1.2%

Strip out the truth and the figure can be anything you want.

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what confuses me is, aren't the CPI and the RPI the same thing, just the CPI has housing taken out of the equasion?

If this is the case, then if CPI increases, and RPI stays the same, it is implying that the housing costs are decreasing????

What is going on?

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I`ll tell you what`s going on. My NS&I Index-linked savings rate isn`t going up (as I expected it to). How can CPI increase, but RPI stay the same ? Doesn`t RPI include housing costs ? If food, fuel etc is increasing, then housing costs must be decreasing, is this true ? Aren`t mortgage rates generally increasing ?

My theory is that there has been a sharp increase in the number of people getting NS&I Index-linked certificates, and if there is an increase in RPI, then it could be inflationary, due to the extra interest we will earn ! :blink:

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CPI is not RPI minus housing. They use different baskets of goods. CPI includes rent as its housing element. RPI includes the cost of servicing a mortgage. Neither includes the price of houses as such, otherwise they'd both have soared in recent years.

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Well, at least student loan interest rates will drop 0.7% from last year now that rpi =4.1% :rolleyes:

Nope, the student loan rate is based on the March RPI, these are still the Feb figures.

Expect another "unexpected peak" in RPI next month.

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I'm slightly perplexed as to why they changed the basket to one which puts CPI up?! Normally they frig the numbers down. Maybe AD is still a bit in green in the job and they slipped one past him. :P

So that the inflation figures will decline from here.

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But without the change in methodology, the figure would have remained at 2.2%

So in other words, CPI inflation was actually 2.5% last month as well, not the 2.2% we had been led to believe.

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  • 295 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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