Tuesday, May 19, 2009

Make sure you have your pinch of salt to hand

CPI inflation falls to 2.3pc; RPI at record low

Consumer Prices Index (CPI) annual inflation – the Government’s target measure – fell to 2.3 per cent in April, down from 2.9 per cent in March. Annual inflation measured by the Retail Prices Index (RPI) - which includes housing costs such as mortgage interest payments and council tax – fell from -0.4 per cent in March to -1.2 per cent in April, the lowest figure since records began in 1948. The largest downward effect on CPI inflation came from housing and household services, mainly due to electricity and gas bills which fell this year but rose a year ago. Food and non-alcoholic beverages also contributed to the decline, with the largest effect coming from vegetables and meat. Prices for alcoholic beverages and tobacco had a further downward effect as prices rose a year ago, ...

Posted by 51ck-6-51x @ 10:44 AM (1258 views)
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10 thoughts on “Make sure you have your pinch of salt to hand

  • Can we believe these figures from the corrupt ONS which is part of the corrupt government trying to keep their second home prices up which were paid for by the taxpayer

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  • “there was a pleasant surprise in the drop in food inflation (from 10.5pc to 8.6pc), suggesting that that particular source of stubborn upward pressure is finally easing”

    Food price is IMO pretty much the only one that counts. And that has been in double figures. I don’t care if livery is cheaper.inflation is 10%

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  • matt_the_hat says:

    RPI is just showing a correction of the massive inflation over the last decade in asset (house) prices

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  • For anybody on median or modal income – any measure of central tendency that’s unaffected by the earnings of the top decile – inbreda is right; food is the only item in CPI that really counts.

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  • icarus – yes, each consumer has their own inflation measure.

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  • general congreve says:

    Matt the hat @4 – Spot on. RPI going down a bit just represents the fact mortgage payments have lowered because of the effect of the BoE recently recently slashing interest rates. The negative effect on RPI won’t last much longer though.

    When you consider the fact my neighbour’s mortgage has gone down by several hundred quid a month, but the RPI is only -1.2 (meaning the cost of living including mortgage payments is only marginally down on what it was a year ago) it tells you that everything else must be flying up in price to keep the RPI at this low level of deflation.

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  • Consider the effect when interest rates are increased to counteract inflation. RPI will shoot through the roof.

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  • “Food…contributed to the decline, with the largest effect coming from vegetables and meat”. Vegetables???? See the later posting (1.08pm) of mark from the Daily Mail.

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  • Vegetables and meat?!!! I was only saying the other day to Miss D’oh that meat had gone through the roof. Which planet would the ONS be on then?

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