RPI 4.4%; CPI 3.4%; BoE In Denial

HAMISH_MCTAVISH

Someone remind me again what was the VAT rate at this time last year????

jim83

StevieJ wrote: »

Just looks like a chart of RPI.

Well it is an RPI derivative, so it should.



The two are not one and the same though. Taxation could (and likely will) increase, moving the rate at which a persons gross income needs to rise in order to maintain purchasing power above the rate at which prices are rising.

kennyboy66_2

Kohoutek wrote: »

If the next government can, but no government for years has made any real effort to do so. I think it's inexcusable to keep the freebie benefits - free TV licences, winter fuel allowance (unless you're actually poor), bus passes , child trust fund etc.

You're right, freezing the other income based benefits would probably be more appropriate than cutting them.

Couldn't disagree with any of them.

I'd roll the winter fuel allowance into the basic state pension if necessary (it would then be taxable), and it would reduce the worthless administration of it.

All of your examples seem to me just to suck people into the beneficial munificence of the state and enables politicians to dole out largesse like ancient kings or pontiffs.

JamesU

jim83 wrote: »

Well it is an RPI derivative, so it should.



The two are not one and the same though. Taxation could (and likely will) increase, moving the rate at which a persons gross income needs to rise in order to maintain purchasing power above the rate at which prices are rising.

Ha! So it is a real graph of sorts.....I retract my previous post comments, keep that chap at the ONS employed a little longer. If any body undertands how this TPI graph can be made (criteria used for any taxation parameters and relevant to who?) I would be interested in understanding this.

JamesU

nembot

kennyboy66 wrote: »

1) Inflation ticking along nicely. Helps the deficit while we all become a little poorer (which would happened anyway).

2) Unemployment probably peaked

3) Deflation threat receding

4) Economy growing

5) Trade deficit shrinking

Things not quite as bad as they could have been.

GDP & borrowing stats out later this week as well.

No not quite as bad, but a crystal ball would be required to accurately predict some of the above.

drc

Kohoutek wrote: »

If the next government can, but no government for years has made any real effort to do so. I think it's inexcusable to keep the freebie benefits - free TV licences, winter fuel allowance (unless you're actually poor), bus passes , child trust fund etc.

You're right, freezing the other income based benefits would probably be more appropriate than cutting them.

Perhaps if there is a hung parliament this will be more likely to happen. No party will need to take the blame since they are all working together and the slashing of the welfare state that needs to happen will be done with the apparent approval of the main parties?

jim83

JamesU wrote: »

Ha! So it is a real graph of sorts.....I retract my previous post comments, keep that chap at the ONS employed a little longer. If any body undertands how this TPI graph can be made (criteria used for any taxation parameters and relevant to who?) I would be interested in understanding this.

JamesU

See section 9.5 of RPI technical manual [PDF]. Essentially, it just uses average net salary calculated from tax returns (excluding top 4%) and implied NICs.

Seems like useful data, particularly when viewed in conjunction with RPIY (prices with indirect taxes removed, eg. VAT, duties, etc) as it will show to what effect overall taxation is having on the real terms affordability of things.

Kohoutek

Really2 wrote: »

Not specifically from the UK

I thought we were talking about the UK....That's what my original post was about.

JamesU

jim83 wrote: »

See section 9.5 of RPI technical manual [PDF]. Essentially, it just uses average net salary calculated from tax returns (excluding top 4%) and implied NICs.

Seems like useful data, particularly when viewed in conjunction with RPIY (prices with indirect taxes removed, eg. VAT, duties, etc) as it will show to what effect overall taxation is having on the real terms affordability of things.

Jim83, Thanks for this, Chapter 9 useful. I find recent figures on % RPI inflation pretty meaningless at present despite any scaremongering. RPI peaked at RPI=218.4 in Sept 2008, deflation followed, now RPI=220.7, end result 1% overall inflation or "loss in purchasing power" over 18mths which is easily covered by interest rates over the same period. Last 2 mths higher %RPIs just due to the deflationary hangover with the drop in previous 12 monthly RPIs, and the modest month on month RPI changes over the last 3-4 mths are not substantial enough for me to start worrying about inflation, or a double dip back to deflation for that matter. But post-election could be a different ball game, and the TPI data will be good additional stats to monitor over the medium term.

JamesU

Thrugelmir

chucky wrote: »

the UK is [STRIKE]the[/STRIKE] currently 6th or 7th biggest manufacturer in the world :eek:

We aren't going to be in the Top 10 in a few years time. That's a foregone conclusion already.

When talking about "manufacturing" remember that the UK is now a net importer of oil and gas. The boom days of the North Sea are over.