UK inflation rate declines to 3%

econo_2

dealsearcher wrote: »

Can't see how purchasing a TV or car can be counted in the same way as food. You buy bread every day but TV's and cars maybe once every 5 years. It's interesting that most of the items coming down in price are in the category that you buy every 5 years or so but the items going up in price are in the category that you buy every day.

Your asking a pertinent question of government DS that's why you can't see the logic in the 5 year purchase V the everyday item!

:beer:



The government of the day manipulates and throws things out and in when it suits to manipulate the inflation figures. The fact is governments love inflation and they do nothing but conceal it as best they can with lies and manipulation of these figures.

lostinrates

I just ran the personal inflation calculator in Martin's weekly email and our personal inflation, for DH and I, is just under 6%. I've run these occasionally over the past few months, it takes seconds.

Generali

dealsearcher wrote: »

Can't see how purchasing a TV or car can be counted in the same way as food. You buy bread every day but TV's and cars maybe once every 5 years. It's interesting that most of the items coming down in price are in the category that you buy every 5 years or so but the items going up in price are in the category that you buy every day.

The RPI and CPI are both 'weighted indices'. That is to say that the impact of a rise or fall in price of a particular item is based on how much an 'average household' (as measured by a Government survey of a few thousand households) spends on something in a year. Something which is bought irregularly but is expensive, eg TVs, cars, houses, need to be included and are weighted on the basis that the 'average household' buys once every xx years.

The biggest problem with the inflation numbers is that we all spend money differently: the inflation figures will assume you smoke, drink, ride a bike, drive a car, watch TV, have a gym membership, eat apples, eat steak, own a mobile phone, go to the theatre and have a mortgage. Clearly that doesn't apply to everyone and the ONS (who put the inflation numbers together) recognise that and state that the RPI/CPI are averages. There is even a calculator where you can input your purchases and have it calculate your personal RPI!