Tuesday, April 24, 2007

CPI/RPI Statistical Shopping Basket Adjusted

Measuring Inflation

Re earlier post regarding Mervyn Kings comments on inflation, the chap may well be right due to the rising value of the pound and adjustments made by the ONS to their virtual shopping basket. Can anyone spot any items listed that may go up in price!

Posted by enuii @ 05:00 PM (760 views)
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5 thoughts on “CPI/RPI Statistical Shopping Basket Adjusted

  • waitingfor hpc says:

    i am a basic guy – all this is just fudge. Inflation up/down – all very short term. Debt – SEVERE . Govt Debt – SEVERE.
    Average wage in my town £20k – average 2 bed flat £200K+. Average multiple 10x.

    all the rest is just spin. in then end prices will flatline / fall. even if they flatline BTL will not get returns so sell maybe not all but some.

    in a long term trend CPI 1% still gets IR’s at 6%+. IMHO something will give in the end. but not when we expect it and the harder people try to hide it the faster and more of a surprise it will be when it arrives.

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  • “DVD recorders, satellite navigation (satnav) systems and digital (DAB) radios are among 20 items included for the first time in the ‘shopping basket’ the Office for National Statistics (ONS) uses to measure inflation”

    All of these mentioned items have collapsed in price over the last 12 months. In other words the general populatiohn is just being fobbed off with meaningless hooky fudged statistics. No wonder so many people are just sick to death of the lies, deceit, scams, fraud, shafting and general crap government (local as well as national) from all main parties that is now dished out on us on a daily basis. The estimation of the people running the show must have reached an all time low without doubt.

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  • Great quote:

    “The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.”

    Ludwig von Mises

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  • “DVD recorders, satellite navigation (satnav) systems and digital (DAB) radios are among 20 items included for the first time in the ‘shopping basket’ the Office for National Statistics (ONS) uses to measure inflation”

    I don’t own any of these, and have no intention of buying them anytime soon… so why on earth is the CPI supposed to be of any relevance to me!?!

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  • dohousescrashinthewoods says:

    @waitingfor hpc: Spot on. It’s way too easy to get caught up in detail and I think that sums it up perfectly.
    @harold: Perfect!

    Speaking of getting lost in detail, has anyone done the analysis of plotting what CPI would be according to previous “basket” compositions?
    If we could plot the result over time of each composition, we could see clearly whether it is us or the government who are cynics.

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