This government is laughing at saver!

6022tivo

Inflation at 1%???

Why has my council tax just gone up by 4.6% ??

I earn around 9k a year and have to pay over 1K in council tax..

Hold on, if I blow all my savings on crap, sell the house and blow the cash, I can claim council tax benefit getting £1k and housing benefit of around £7k a year.... This country.. I hate it.... WHY do we have a soft benefits system..

Arthurian

Check your personal inflation rate here:-
http://news.bbc.co.uk/1/hi/business/7669072.stm

Onawingandaprayer

Mine's 4.7%. Where'd this 1% come from?

6022tivo

Arthurian wrote: »

Check your personal inflation rate here:-
http://news.bbc.co.uk/1/hi/business/7669072.stm

Mine is Your cost of living goes up 6.6% a year


I had to pause when I put in my house price and took a chunk off what I paid for it 12 months ago.

scrooge2008

:rolleyes: Must be from me - mine was -0.8%

dunstonh

Inflation at 1%???

Inflation data lags the current scenario. RPI is already at 1.x and that is often quoted as being more realistic than CPI.

Why has my council tax just gone up by 4.6% ??

Because councils are inefficient at controlling income and expenditure.

Masomnia

8.4%. Crikey!

jon3001

Stavros wrote: »

So do I
I ask merely because the monthly interest on my savings account with the B & B have dropped by 65%. Please don't insult me and tthousands of other savers who rely on monthly interest to bolster income and pensions.

I keep saying this: don't rely on interest from savings to bolster income.

Trying to derive an income from your capital is a long-term requirement. Long-term means you must look at investments to provide a meaningful long-term income that keeps pace with inflation.

Savings are short-terms instruments for preserving capital; fine for short-term expenditure requirements and emergencies; awful for long-term incomes. Don't do it!:eek:

LesU

If inflation is at 0.9% (RPI), how come CPI is 3.2%? The answer, of course, is mortgages. If you are a saver and don't have a mortgage, then the Government setting the bank rate at the lowest ever and therefore pushing down the mortgage repayments, will have only one effect on you. You will be poorer. People without mortgages are quite often the people with savings.
As for where rates are going. I have just been watching TV this afternoon with an article interviewing a trader in a market up North. His costs are rising dramatically because all of his goods come from abroad. He may not increase his prices, but he certainly isn't going to reduce them.

bjorn_again

tom188 wrote: »

Indeed, classic examples of mental accounting

What would people prefer - a savings account paying 6% and inflation at say 3.9% or a savings account paying 2% and no inflation?

The real return on capital in each case is identical.

I would prefer a savings account paying 6%, and take my chances on what I was told inflation was and how it affected me. Regardless of what Brown/Darling tell us the rate of inflation is, they cannot say how it affects us as individuals. Inflation can be seriously influenced by the price of a single commodity - heating oil say - if I as an individual don't use that commodity it is nonsense to tell me that I am better-off because inflation is down. We (savers) are all better-off having a higher rate of interest with the equivalent higher rate of inflation, as we have control over what we spend our money on.