MSE News: Largest inflation jump in two and a half years
Comments
-
Don't you think that its ODD that RPI was fine for 38yrs for updating pensions & benefits, which by the way is almost a working life time, well it was mine but then all of a sudden RPI was not good enough, or should I say TOO HIGH and this Coalition stuffed us all with the CPI Robbery index?
Which has been said was the highest at 5.2% but what has not been said is that the RPI was 5.6% at the same time. Thus, if pensions had been updated properly then the increase would have been 5.6% RPI NOT 5.2% CPI.
Then this September the CPI falls to 2.2% but one month later it rises to 2.7% and at the same time RPI rises to 3.2%.......So I also smell something very fishy indeed.....In fact no one will be able to TRUST either measure soon, (I doubt many trust either now anyway) , the CPI is not anywhere near pensioner inflation and RPI is about to be lowered to nearer the discredited CPI.
So I tend to agree with people who say the measures are being fiddled with. Because when I go shopping or put fuel in my tank or heaven forbid put the heating on, I dread the Bills. I know that my 2.2% private BTpension increase in April thanks to this Coalitions change from RPI to CPI will NOT cover my actual inflation.
So yes I suspect that these people are correct......The measures are being massaged DOWN.
THE CPI is the robbery index and the RPI is about to become the same.....The UK inflation measure especially for pensioners is NOT what this Government is leading everyone to be believe.0 -
For a start most means benefits were not uprated with RPI under the previous govt, they used the ROSSI index which (like CPI) excludes most housing costs.Don't you think that its ODD that RPI was fine for 38yrs for updating pensions & benefits, which by the way is almost a working life time, well it was mine but then all of a sudden RPI was not good enough, or should I say TOO HIGH and this Coalition stuffed us all with the CPI Robbery index?
And the change to the basic state pension uprating will be better long term for pensioners, as the earnings link is restored. Short term it has resulted in a lower rise than had they used RPI, but long term wage inflation exceeds RPI. Had the previous govt used the "triple lock" uprating this govt has introduced, the basic state pension would be much higher now.
Yes, exactly a year after an unusually high figure there is an unusually low figure. This is not co-incidence. If you can't see why then go away and try to understand what the figures mean.Which has been said was the highest at 5.2% but what has not been said is that the RPI was 5.6% at the same time. Thus, if pensions had been updated properly then the increase would have been 5.6% RPI NOT 5.2% CPI.
Then this September the CPI falls to 2.2% but one month later it rises to 2.7% and at the same time RPI rises to 3.2%.......
If private pension uprating has changed that was a decision by the scheme. I have a deferred private pension and their uprating is still RPI.So I also smell something very fishy indeed.....In fact no one will be able to TRUST either measure soon, (I doubt many trust either now anyway) , the CPI is not anywhere near pensioner inflation and RPI is about to be lowered to nearer the discredited CPI.
So I tend to agree with people who say the measures are being fiddled with. Because when I go shopping or put fuel in my tank or heaven forbid put the heating on, I dread the Bills. I know that my 2.2% private BTpension increase in April thanks to this Coalitions change from RPI to CPI will NOT cover my actual inflation.
This is like the "vaccinations kill" internet conspiracy theory. Loads of ranting there's a conspiracy to poison us all and no evidence whatsoever.So yes I suspect that these people are correct......The measures are being massaged DOWN.
THE CPI is the robbery index and the RPI is about to become the same.....The UK inflation measure especially for pensioners is NOT what this Government is leading everyone to be believe.0 -
I have a deferred private pension and their uprating is still RPI.
http://www.bbc.co.uk/news/business-19826770
Not exactly.If private pension uprating has changed that was a decision by the scheme.
http://www.pensionsadvisoryservice.org.uk/media/592194/spot011%20spotlight%20on%20the%20change%20from%20rpi%20to%20cpi.pdf0 -
Yes, exactly a year after an unusually high figure there is an unusually low figure. This is not co-incidence. If you can't see why then go away and try to understand what the figures mean. If private pension uprating has changed that was a decision by the scheme. I have a deferred private pension and their uprating is still RPI.
This is like the "vaccinations kill" internet conspiracy theory. Loads of ranting there's a conspiracy to poison us all and no evidence whatsoever.
Not exactly. The evidence you need I believe is shown below, and many private pensions have been changed from RPI to CPI because they are linked to the Government Statutory uprating, such as BT, BA, Royal Mail & the public sector.
You are so far lucky to keep your RPI uprating as you can see from the figures below if your pension had been uprated by CPI over the past 15 years you would have lost 0.8% of it, which when compounded adds up to lots of lost income.
From 2010 to date you can see the variance and thus the loss caused by CPI which for anyone on an average Private Pension or Public Pension of £8000, equates to £478 lost in just three short years.
Regarding your RPI indexed pension, beware the ONS are about to change the way the RPI is calculated to bring it down nearer to the lesser CPI robbery index.
I concede on the State Pension and the Benefits uprating as you describe, but the 1% increase over 3 years as stated in the Autumn Statement, the variance could mean hundreds of pounds of lost benefits as inflation rises for already very poor people and the working poor in tax credits. This can only make the poor, poorer and the low paid workers worse off. The IFS say that 40% of the latest cuts are hitting the poor whilst only a tenth of the rich are effected!
SEPTEMBERS INFLATION RATES
Year RPI CPI Variance
1997 3.6 1.8 1.8 Labour Gvmt
1998 3.2 1.4 1.8 Labour Gvmt
1999 1.1 1.2 -0.1 Labour Gvmt
2000 3.3 1.0 2.3 Labour Gvmt
2001 1.7 1.3 0.4 Labour Gvmt
2002 1.7 1.0 0.7 Labour Gvmt
2003 2.8 1.4 1.4 Labour Gvmt
2004 3.1 1.1 2 Labour Gvmt
2005 2.7 2.5 0.2 Labour Gvmt
2006 3.6 2.4 1.2 Labour Gvmt
2007 3.9 1.8 2.1 Labour Gvmt
2008 5.0 5.2 -0.2 Labour Gvmt
2009 -1.4 1.1 -2.5 Labour Gvmt
2010 4.6 3.1 1.5 Coalition Gvmt
2011 5.6 5.2 0.4 Coalition Gvmt
2012 2.6 2.2 0.4 Coalition Gvmt
2.9% 2.1% 0.8%
Average inflation Over 15 years
Source data from the ONS0
This discussion has been closed.
Categories
- All Categories
- 343K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards