Tuesday, June 17, 2008
Contrived Price Index
Inflation is rising so rapidly that, contrary to what most experts predicted just a few months ago, interest rates may soon have to go up - not down. The Government's favoured measure of how fast prices are rising - the Consumer Price Index (CPI) - has today registered inflation hit 3.3 pc last month. But that is so far removed from most people's experience of prices in the shops and at the petrol pump that CPI might as well stand for the Chinese Prices Index. This is why The Daily Telegraph has launched the Real Cost of Living Index (RCLI).