Inflation in January - another tale of two halves..

Milarky

http://www.statistics.gov.uk/cci/nugget.asp?ID=19



Those with mortgages look like having 'near zero' inflation this month - for the rest it's '3%' officially.

When the spate of mortgage rate cutting has stopped and fallen out of the 12 months comparison these indices should be a lot closer together. Is CPI really predicted to be any/much lower than now in 12 months? Have all those import costs gone away? Aren't the 'bills' (in the form of higher taxes) simply unreflected in this picture?

ps2659

Milarky wrote: »

http://www.statistics.gov.uk/cci/nugget.asp?ID=19



Those with mortgages look like having 'near zero' inflation this month - for the rest it's '3%' officially.

When the spate of mortgage rate cutting has stopped and fallen out of the 12 months comparison these indices should be a lot closer together. Is CPI really predicted to be any/much lower than now in 12 months? Have all those import costs gone away? Aren't the 'bills' (in the form of higher taxes) simply unreflected in this picture?

Link not working.

Mort_Gage

ps2659 wrote: »

Link not working.

Link working OK (for me)

soulsaver

Mort_Gage wrote: »

Link working OK (for me)

Et moi...aussi

Lokolo

Keep the mass drop going until April then I don't care. Student loan rate of -3% will keep my happy :beer:

gozomark

Milarky wrote: »

Is CPI really predicted to be any/much lower than now in 12 months? Have all those import costs gone away? Aren't the 'bills' (in the form of higher taxes) simply unreflected in this picture?

1. yes - will be down to 1% (or lower) on CPI during the Summer, but then rising

2. no

3. yes - CPI is prices, not taxation, hence why council tax excluded

stefbeat

Lokolo wrote: »

Keep the mass drop going until April then I don't care. Student loan rate of -3% will keep my happy :beer:

I was wondering about this. I understand that the student loan is based on the RPI but I bet there is something in the small print saying that the interest rate won't go below zero....

Does anyone know for sure?

I just can't see them allowing it

Lokolo

I can't see them allowing it either. They will change the T&Cs no doubt. Guess we'll just have to see.

mike22

Sorry, but could someone explain what does CPI and RPI mean?

Lokolo

CPI = Consumer Price Index
RPI = Retailer Price Index

they basically look at prices of different things and the changes are from the year before.

So if an apple goes from £1 to £1.05 in 1 year the inflation of the apple is 5%

anselld

Lokolo wrote: »

CPI = Consumer Price Index
RPI = Retailer Price Index

they basically look at prices of different things and the changes are from the year before.

So if an apple goes from £1 to £1.05 in 1 year the inflation of the apple is 5%

CPI excludes mortgage interest which is the main downward pressure on RPI. ie if you have a fixed rate mortgage or no mortgage CPI is a better measure of inflation for you.