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MSE News: Cheaper energy brings inflation down

This is the discussion thread for the following MSE News Story:

"Lower electricity and gas bills helped drag the overall rate of inflation down last month, official figures showed today..."

Comments

  • Windows
    Windows Posts: 48 Forumite
    Tell that to someone who uses LPG for gas - due to the Europe wide cold spell this winter last week it suddenly jumped 8ppl overnight... 12.12% just like that.

    Wonder if that will go down again now the demand is much lower? Also will we see inflation go back up next month partly due to this?
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is this article really saying that changes in price of digital cameras has had more of an effect on inflation than changes in price of petrol and diesel?
    If so, I think they need to rethink their basket!
  • davidgmmafan
    davidgmmafan Posts: 1,459 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I have to laugh at this Guardian article

    http://www.guardian.co.uk/business/2012/mar/20/falling-energy-bills-inflation-down

    specifically

    "The dip in the CPI rate of inflation will continue the downward trend seen in recent months and matches forecasts by the Bank of England, which predicted that the rise in the cost of living would ease this year"

    You would've thought someone would've pointed out that this is the exception rather than the rule. They've been saying inflation was temporary for about two years.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
  • oldvicar
    oldvicar Posts: 1,088 Forumite
    Its this part of the MSE article which accords with my prejudices:
    The drop comes as some economists warn the overall rate of inflation may not pull back as quickly as previously thought
  • LesU
    LesU Posts: 338 Forumite
    Of course inflation is coming down, apart from fuel prices going up, we haven't had any above inflation increases in rail fares, have we? I guess the average commuter will have to console themselves with a state of the art, ultra high resolution snap of the delayed trains noticeboard or fuel pump price using their newly acquired digital camera.

    Inflation is being manipulated by this Government in very sneaky ways ,however. Notice most of your council tax bills have hardly changed from last year? That rise, I would guess, would normally go on RPI at least. Councils being very fiscally prudent? No. The Government subsidising the councils to the tune of 2.5% to mask the inflation increase. Yes.
    Remember, you have still paid for that increase, the money has to come from somewhere.
  • JezR
    JezR Posts: 1,699 Forumite
    Part of the Furniture 1,000 Posts
    RPI includes council tax, CPI doesn't. Council tax increases ran well ahead of either general inflation measure for most of the 2000's.
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