What is the current level of inflation?
Discussion
dds1 said:
I should have stated that was the official CPI figure, which bears little to no relation to reality
However if your company are looking at what sort of rise to give you based on inflation, what figure do you think they are likely to look at!
I don't believe companies are using the new CPI as a basis for wage negotiations-I believe they are still using the old RPI which includes some measure of housing costs-and is currently higher.
Retail prices for goods in the shop are actually falling when you compare the quality of what can be bought. It is all the other costs of living that are rising so much (which are often either partially or fully excluded from the official rate)
Bat21 said:
right to stop the pedants, and freshly released from the BOE this morning:
CPI 1.6%
RPI 3.2%
RPI excl mort interest payments 2.1%
happy?
So why has Mr Brown increased Vehicle excise duty on the Bat21 Mobile by 3.03% described in his budget as in line with inflation?
He can choose whichever rate suits the moment.
anonymous said:
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I think if we look at the real cost of living including the cost of housing and government taxes-it has probably been growing at alot more than 5%-However if we see a house price decline this will fall back-you can see here the problem with including housing directly in the cost of living.
Interesting enough inflation in the public sector is at a higher rate than in the private. The NHS requires big percentage rises in it's budget each year just to stand still.
anonymous said:
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I'm saying that the real cost of living includes what you pay for a house-not that the current measures do include it.
The problem is how to include it when a house is an asset that can go down or up in price.
PS I hope that little misunderstanding is now cleared up-You got my E Mail I take it.
anonymous said:
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The problem of including the interest element of the mortgage in a rate of inflation you are targeting is that if the BOE increases interest rates to combat inflation, then it's measure of inflation rises due to that very action.
Personally I would be happy if their were two distinct rates on inflation.One which the BOE would target which would be that of prices independent of government control, and a second cost of living measure, used for wage negotiations and benefit increases, which measures exactly what the cost of living is in average.
tinman0 said:
conservative policy is not to employ more and more civil servants which is where our taxes are going. it wont be long before there are more bean counters than beans.
it isn't conservative policy to spend and tax. spend and tax is a Labour thing.
Agreed there-Public sector employment has grown by around 570,000 since 1997-of which only 1 in 4 are front line employees (nurses, teachers etc)
The stats guys have changed the items being measured.. out goes spam, powdered milk, analogue camcorders etc, and instead they measure the cost of stuff like dvd players 
Analogue camcorder prices have already IMHO fallen as low as they can (£99??) - so now they measure the price of another consumable that is falling in price... Why not measure council tax (up), train/bus fares (up) etc etc???
Analogue camcorder prices have already IMHO fallen as low as they can (£99??) - so now they measure the price of another consumable that is falling in price... Why not measure council tax (up), train/bus fares (up) etc etc???
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