Tuesday, November 13, 2007

CPI upto 2.1 RPI to 4.2

Petrol drives up inflation

Figures from the Office for National Statistics today show that consumer prices index (CPI) annual inflation – the Government’s target measure – was 2.1 per cent in October, up from September’s figure of 1.8 per cent.

Posted by holding out @ 07:53 AM (1244 views)
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12 thoughts on “CPI upto 2.1 RPI to 4.2

  • What a joke the inflation figures are. We have talk of price of strawberries and eggs going up! Well I forgot how much they factor in my life – I guess the 100s if not 1000s of pounds people spend on rents and mortgages each week pale into insignificance when compared to the much larger amounts each of us is psending strawberries and eggs!!

    I’d like to meet anybody who has a personal inflation rate of 2.1%.

    Why do we fall for this s$%t as a nation time and again?

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  • Cannot open link.

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  • Bizarre opening comment. I don’t think anyone “falls” for anything. No one suggests that housing costs are in CPI. They, however, are what the BoE use to determine interest rates.

    Clearly, if they were, the figures would be different. But I doubt that now is the time to start arguing that they should be included. That was 10 years ago.

    Indeed, it would be hilarious if chat like that started the ball rolling on including them (in the BoE mandate for controlling inflation), just as housing costs start to reduce.

    🙂

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  • Well Swervyn Mervyn will have to brush up his letter writing skills then…

    (and that is on a very restricted mssaged figure base)…

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  • Sold My Soul To The Never Never Never says:

    So interest rates won’t be cut again next month!

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  • Planning4acrash says:

    Didn’t you just know it!! To be honest, this has come sooner than I’d thought. This is on a trajectory towards 3% again for January. No doubt another 5 IR rises over the next 15 months. David Branch-Flower-Power aka David Blanchflower will have egg on his face, serves him right, sack the idiot!

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  • How do you fudge the figures on inflation?
    Simple, select a hotlist for the basket and where possible control price increases on these items by subsidising, or backhanding the boss of the major producers, so that they don’t push prices up on these items..

    ?

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  • planning4acrash says:

    Well, this was expected by us here, but its happened earlier that I had anticipated. The finger has popped out from the hole in the dam! I personally think that Mervyn will be writing another letter to the Chancellor by January and expect 5 rate rises over the next 15 months. David Blanchflower aka David Branch Flower Power, will have egg on his face!! Sack the idiot!!!!

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  • George, I think it’s a little more complex than that, but your sentiment is right.

    When there is a spike in the price of a commodity, the Bank of England increases the weighting immediately, and resets the index. This way, when the price drops, inflation appears to drop right back to lower than pre-spike levels, thus insulating from further price shocks. Meanwhile, prices just keep on rising, and the Bank of England keeps telling Mr Average that inflation is low.

    Another sly trick is that the Chacellor uses one of his most powerful weapons to shape public opinion – the BBC. The BBC has been behind campaigns to cut credit card fees and, transfer costs and rail travel costs. But it’s funny that the BBC articles rarely give two hoots about many other living costs such as surveyors fees, private healthcare costs or insurance premiums.

    Why? Because all of the former are in the inflationary goods basket! So the BBC launches a glossy campaign to “out” those swingeing greedy banks/rail companies and the government gets low inflation. Everyone’s a winner! (Unless you want to buy a house to live in, of course, in which case you’re enslaved to serfdom for the rest of your natural life while you repay the bank on an asset that is falling in value).

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  • Personally I’m waiting for the Treasury to announce that, due to the changed global economic conditions, they are raising the inflation target to 3% or even higher. Thus allowing them to cut interest rates. The pressure on them to cut is immense and, as these results prove, they are no longer able to cook the books to a sufficient extent to be able to pretend that inflation is below 2%.

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  • Would it be viable to calculate inflation figures excluding luxury items? This would be the real indicator that mattered to millions of low paid people who’s ability to afford food and heating is hidden because the cost of a dvd player has decreased!

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  • planning4acrash says:

    Inflation targets and inflation statistics should be passed to a commission that is independent from the government and BOE, with neither responsible for appointments. That is the only way to avoid this lunacy.

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