MSE News: Savers hit as inflation remains high

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

"Higher air fares and food bills helped keep rises in the cost of living over the year well above the official target ..."
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  • alanqalanq Forumite
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    Or alternatively "savers relieved as the annual rate of change of CPI remains unchanged and that of RPI falls slightly"?

    OK savers are suffering with (by the standards of recent times) high inflation but a headline saying they they have been "hit" seems to me to imply a sudden change for the worse.

    I suppose ""savers continue to suffer from high inflation" wasn't considered dramatic enough.
  • dunstonhdunstonh Forumite
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    Do you remember the days when 3.1% was considered good. I havent seen the figures yet without the VAT increase factored in.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 14 September 2010 at 12:53PM
    neil324neil324 Forumite
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    edited 14 September 2010 at 12:53PM
    Title headline is incomplete....

    Not only does it affect savers but with pay rises below inflation also consumer spenders. Not looking good for UK PLC is it folks on a number of fronts.

    My god just looked at the link no mention of it. MSE News....waste of space.
  • bendixbendix Forumite
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    "Savers were once again left reeling as higher air fares and food bills helped keep rises in the cost of living over the past year well above the Bank of England's inflation target."

    More sensationalist bulls**t from MSE's finest journalists, masquerading as news.

    For the record, Guy Anker, I am a saver and I was not left reeling by the inflation figure. On the contrary. I'm remarkably ambivalent because, frankly, the only option to saving is spending, and I'm more interested in growing my wealth than disposing of it.

    I hate this irresponsible reporting. A headline like that gives people the impression that saving is not worthwhile; it implicitly encourages people to be spenders, going against the entire ethos of this board.

    For the record, my share investments have increased 7% in the last month, considerably more than the annual rate of inflation.
  • StompaStompa Forumite
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    So food bills have risen by 0.1% over the period. That'll be why I've not noticed any increase then.
    Stompa
  • An attempt at sensationalism. A 'wanna be' tabloid journalist.
    You'd think a 10 yr old has written this article. The article does nothing to help anyone.
  • LesULesU Forumite
    338 Posts
    dunstonh wrote: »
    Do you remember the days when 3.1% was considered good. I havent seen the figures yet without the VAT increase factored in.

    I guess those were the days when RPI was the measure of choice. So it's really 4.7% inflation at the moment. Why has the CPI started to be used exclusively to describe inflation, is it because it is lower at the moment?
    Remember, don't think of RPI as RIP, it's still alive and kicking. Check your train fare rise next year and see what it is based on - not to mention my pension!
  • bendixbendix Forumite
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    Stompa wrote: »
    So food bills have risen by 0.1% over the period. That'll be why I've not noticed any increase then.

    Precisely. But, Stompa, it's not just the 0.1% increase in food bills that has us . . . .ummmmm . . 'reeling'. It's also the jump in air transport costs, don't you know?

    Fatuous. Utterly fatuous.
  • dunstonhdunstonh Forumite
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    Found it.

    "The annual rate of consumer price inflation excluding indirect taxes such as VAT also remained unchanged at 1.4%."

    So, on that basis, savers are not worse off as you can get more than 1.4%. Plus, the VAT increase replaced the decrease that savers benefited from when they made purchases. Of course, the next VAT increase will keep the figure higher for 12 months but its important to see the impact of inflation without the tax rises.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ViolaLassViolaLass Forumite
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    Did Mr Anker consult any savers on their feelings? I'm a saver and I'm not 'reeling'. Like Bendix, I don't think that spending my money instead of saving it would really leave me better off in the long run.
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