CPI Up to 3.7% RPI Up to 4.8%

Graham_Devon

Really2 wrote: »

Tesco have not increased fuel duty or the cost of goods for over 1 year now?

Leave the frickin goalposts alone for just one second.

As my article said, it's fashionable to now look at CPI with taxes stripped out (hence so many on here using it to make CPI look better). It's also simplistic (hence why so many on here are using it)

Why is it simplistic? Because stripping out the FULL tax hike is not actually what's happened on the high street. People haven't actually PAID the FULL tax hike in terms of increase in the product cost.

Going on pedanticly about how VAT will have to be paid by the consumer on every VAT attracting good, is just confusing the issues, and stating the absolute obvious, while ignoring what's actually being said.

So you end up in a situation whereby you have overstated the actual reduction CPIY has.

Why? Because the price of every VAT'able item has not increased by 2.5%. The tax element has, but the actually ticket price has not.

Take my sony TV, it's STILL £299. Was before crimbo, still is now. It's all over the place, tescos, asda, bestbuy, ebuyer. Price hasn't moved.

However, with what you are doing with the CPIY statistics, you are basically assuming that TV DID go up by 2.5%. Because you are assuming everything has, and therefore stripping the effect of this 2.5% hike out of the CPI figures.

It doesn't really work. Works to an extent, but as stated, it's too simplistic to be actually correct, yet fashonable as it gives people a way to suggest it's actually not as bad as it looks.

ILW

Graham_Devon wrote: »

Leave the frickin goalposts alone for just one second.

As my article said, it's fashionable to now look at CPI with taxes stripped out (hence so many on here using it to make CPI look better). It's also simplistic (hence why so many on here are using it)

Why is it simplistic? Because stripping out the FULL tax hike is not actually what's happened on the high street. People haven't actually PAID the FULL tax hike in terms of increase in the product cost.

Going on pedanticly about how VAT will have to be paid by the consumer on every VAT attracting good, is just confusing the issues, and stating the absolute obvious, while ignoring what's actually being said.

So you end up in a situation whereby you have overstated the actual reduction CPIY has.

Why? Because the price of every VAT'able item has not increased by 2.5%. The tax element has, but the actually ticket price has not.

Take my sony TV, it's STILL £299. Was before crimbo, still is now. It's all over the place, tescos, asda, bestbuy, ebuyer. Price hasn't moved.

However, with what you are doing with the CPIY statistics, you are basically assuming that TV DID go up by 2.5%. Because you are assuming everything has, and therefore stripping the effect of this 2.5% hike out of the CPI figures.

It doesn't really work. Works to an extent, but as stated, it's too simplistic to be actually correct, yet fashonable as it gives people a way to suggest it's actually not as bad as it looks.

You are correct, I do not see all the pound shops rebranding themselves as "pound and twopence shops".

Really2

ILW wrote: »

As it is getting a little pedantic, I should point out that the retailer claims back the VAT on buying.

It is;) (the point I made was correct)

So yes Output VAT - Input VAT = Vat liability.

We could go all day, I said above on the point you questioned, not passing on VAT was lowering margin.

Really2

ILW wrote: »

You are correct, I do not see all the pound shops rebranding themselves as "pound and twopence shops".

I thought most of the £ shops were "XXXXX saver" stores now or "£ stretcher"?

Graham_Devon

Really2 wrote: »

I thought most of the £ shops were "XXXXX saver" stores now or "£ stretcher"?

Really2

Graham_Devon wrote: »

Take my sony TV, it's STILL £299. Was before crimbo, still is now. It's all over the place, tescos, asda, bestbuy, ebuyer. Price hasn't moved.

Perhaps electrical is not a good example, Exchange rate is a lot better than a few month ago.

Electrical goods also dropped in price as retailers put on promotions to entice shoppers to buy before the VAT rise, although the annual deflation slowed from 2.7% in November to 1.9% in December.

In reality you do not know where they have got better deals and not passed them on to cover the "VAT Increase"

You work in IT so you know technology Deflates, so it is easy to hide a VAT increase in such goods.

The best way of looking at is on fuel and food something with a daily price. Where has not passed on VAT increases on those.
If places were truely not passing on rises why are they passing on full increases on these?
They store up drops to lessen effect, bottom lines prove they are not lowering margin

Generali

Really2 wrote: »

bottom lines prove they are not lowering margin

Wages are going up by less than prices as a whole, rents are going up by less than inflation too. Both those things should help support the bottom line.

lemonjelly

LMFAO at that pic Graham!:D

stonethrower

My wife is a chef and she said her place had used the vat increase as an excuse to put the prices up (a lot more than 2.5%) they hadn't increased their prices in over 2 years and now with the vat, gas and electricity increases they had no option but to increase. I would imaging a lot of businesses are doing the same. So some businesses may absorb the vat rise while others wont.

Graham_Devon

Really2 wrote: »

Perhaps electrical is not a good example, Exchange rate is a lot better than a few month ago.

Why not?

It's a product that hasn't increased in price to the consumer due to the VAT rise.

It's also a product that will be included in the stripping out you are doing from the CPI figures.

Doesn't matter what the product is, it's included in your stripping out.

What is a good example? Apparently not pound shops, apparently not electrical items....but you WILL use these examples when you wish to strip them out of the CPI figures.

All I'm doing is, like I always do, bringing reality to the table, bringing alternative viewpoints. They get ignored until later on. Even the BBC were talking about the effect interest rate rises will have on the pound, with investors looking to invest if we increase rates, bringing the cost of imported goods down. That was something I bought to the table last week and got flack for.

I'm bringing this now. If you wish to carry on using simplistic metholodgy with overstated end figures, then fine, but at least recognise you are doing so, instead of running round in circles suggesting certain products are not good examples, though will be included in your figures regardless.