CPI Up to 3.7% RPI Up to 4.8%

Gorgeous_George

I don't understand the obsession with ever higher house prices. In many parts of the country prices are simply ridiculous. As jobs disappear and the Tories achieve their goal of an uneducated, low paid workforce, prices will fall and the gap between north and south will narrow.

The answer is still - build more houses (or reduce the populace).

GG

ILW

The selling price of a Mercedes does refllect the production cost.

HAMISH_MCTAVISH

ILW wrote: »

The selling price of a Mercedes does refllect the production cost.

Whereas in many parts of the UK, you can buy a house for less than the production cost.....

ILW

HAMISH_MCTAVISH wrote: »

Whereas in many parts of the UK, you can buy a house for less than the production cost.....

Daft, aint it.

julieq

It's a pointless observation anyway. Anything you make and then buy or sell reflects the production cost to some degree. Builders have profit margins (lower than a mercedes pound for pound I'd imagine). The price has a lower bound of the production cost plus overheads, BUT goods in high demand are more valued and attract a premium.

Gold is a good example. Lowish production costs, high value.

Fixed Rate Mortgages are also a good example. High demand, low cost of production, rates go up.

Bangerchick

julieq wrote: »

It's a pointless observation anyway. Anything you make and then buy or sell reflects the production cost to some degree. Builders have profit margins (lower than a mercedes pound for pound I'd imagine). The price has a lower bound of the production cost plus overheads, BUT goods in high demand are more valued and attract a premium.

Gold is a good example. Lowish production costs, high value.

Fixed Rate Mortgages are also a good example. High demand, low cost of production, rates go up.

Oil is currently a god example of this - pretty well fixed production costs in the shorter term, but rampant inflation at the moment.

In the longer term, production costs will vary due to exploration costs, opening up new fields/less productive areas etc. How lovely. When I filled up my car tonight I noticed the person before me had spent £99! One more litre and it would have been a tonne.

Bangerchick

REAL_MEN_OWN_PROPERTY wrote: »

I'd be surprised id your tenenets weren't thinking of moving out with so many rental price increases but that's up to you as I prefer to keep mine to yearly chnages.

And why are you having a conversation with yourself? Surely you already know the answer to the questions you're asking :rotfl:

[Deleted User]

Really2 wrote: »

I was left shocked we did not have over 4% today. It was well known on here it was going to be over 4% today.

Must be fiddling the figures again.;):)

todays increase was worse than expected,this months figures will without doubt be 4%+ for cpi

Gorgeous_George

Public Sector pensions have changed from tracking RPI to CPI.

Public sector employees calculate CPI.

I wonder why CPI is rising?



GG

nickj_2

Graham_Devon wrote: »

As I say, it's the same mantra every month.

The same outcome every month, which appears to be "its ok, lets do nothing".

That's what we did before the housing bust. Nothing. It's verging on dangerous levels, getting harder to reign in for every month that passes.

No ones talking about putting interest rates up to high levels, just ending the extreme low levels.

I don't think we can simply continue to just simply do nothing and observe. We've done that. We've observed if we do that, inflation just keeps on increasing.

No point in us arguing about it. I've said inflation is going to increase since last year, probably before that. Let's see what the BOE and others say, and do. I think the option of nothing has now passed, and probably passed about 4 months ago, at least.

let's hope merv won't adopt his head in the sand policy as he did with the credit crunch , it will be painful but leaving it until it's too late will cause even more pain