Inflation in the real world

getzegold

This is a chart from the USA but its charting global commodity rises.

Whats the UK CPI? 3,00% yeah right:

bendix

So enlighten us goldieboy . . what is the real rate of inflation for you?

I reckon my personal cost of living - the things I buy regularly - are cheaper today than they were a year ago.

Stompa

bendix wrote: »

I reckon my personal cost of living - the things I buy regularly - are cheaper today than they were a year ago.

I'm not sure I'd go as far as saying cheaper but, so far, I'm really not seeing any noticeable increases in the prices of things that I buy.

Milarky

'Real world inflation' (or data as we might call it) is treated as more and more of a concept these days - to be 'adjusted' to death - according to one source

http://www.youtube.com/watch?v=zPkTItOXuN0

Also, the Royal Statistical Society (hardly a bastion of conspiracy theorists) recently voiced its concerns over the way government compiles and emphasises its chosen measure of 'inflation'. Here's the rather cagey reply from the Chair of the UK Statistics Authority

Linton

bendix wrote: »

So enlighten us goldieboy . . what is the real rate of inflation for you?

I reckon my personal cost of living - the things I buy regularly - are cheaper today than they were a year ago.

It's sad I know, but I have detailed records showing all my expenditure going back 10 years. The annual cost of essentials (about £10k) has not changed at all since I started keeping the records.

nicko33

getzegold wrote: »

its charting global commodity rises.

so not consumer/retail prices then?
The middle men must have taken a little hit on their exorbitant "rip-off Britain" profits

Stompa

Linton wrote: »

It's sad I know, but I have detailed records showing all my expenditure going back 10 years. The annual cost of essentials (about £10k) has not changed at all since I started keeping the records.

Interesting to note that the CPI figures give an increase of 22.7% over that 10 year period.

Kohoutek

Linton wrote: »

It's sad I know, but I have detailed records showing all my expenditure going back 10 years. The annual cost of essentials (about £10k) has not changed at all since I started keeping the records.

Using that logic, virtually everyone in Britain has had a huge increase in their purchasing power over the last ten years (wages going up, pensions and benefits uplifted according to RPI or CPI) if you're claiming that the real cost of living has not increased. I think it's pretty obvious that's not the case.

nearlyretired2004

I would actually agree with Linton........

As Linton knows from posting on my thread 'How much does it REALLY cost to retire?', I more-than-semi retired in 2004 and although I haven't kept the same detailed records, I am still surviving on the same income as I was then (no payrises or pension increases for me over that period...!) and have not touched my capital - in fact it has risen.

(Linton - I found the replies to your post that I had lost and reposted - does this affect any of the comments you made on my thread - cant remember if you were one, but several people commented I wasn't doing enough to protect myself from 'inflation'?)

Rollinghome

Linton wrote: »

The annual cost of essentials (about £10k) has not changed at all since I started keeping the records.

Wait till you get your car insurance renewal: http://www.independent.co.uk/news/business/news/car-insurance-premiums-rise-26-per-cent-as-legal-bills-soar-1976358.html

Haven't a clue about prices in general other than that my council tax bill has risen from £1577 in 2001 to £2770 this year.

Reaper

Inflation is one of those things where people are affected very differently. For example over the last decade or so manufactured goods have become very cheap. That DVD player that used to cost £200 is £20 now. My last pair of jeans came from ASDA and cost £3, a fraction of the cost of the previous ones. That's because we import from countries that make them very cheaply for us.

However if your spending is on things that involve UK labour (eg plumbers) then you will have experienced the opposite.

The BBC once provided a personal inflation calculator but they don't seem to have updated it in the last 2 years.