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CPI Up to 3.7% RPI Up to 4.8%
Comments
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I am probably missing something, but I thought these figures were from december, before the VAT increase.
The VAT increase a year ago results in the inflation rate remaining higher all year.
If VAT had not been raised again in January, then the inflation rate would fall significantly. BUt as it was raised, then inflation will remain high for another year, before dropping back in Jan 2012.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I think we may be fairly safe to assume it was on Fuel and food though. The two main contributors.
So you think the best method is look at the tax and go "aaagh we are miles over target" knowing full well the majority of why we are is down to tax.
I van assure you the customer does pay the full vat rise (it is illegal not to);)
What retailer had not applied Jan 2010 VAT rise? this is Dec 2010 we are talking about?
Some retailers put up prices before a rise in VAT? what do we do then?
go "Oh look, That looks worse"
That statement is 100% incorrect for retail sales.0 -
That statement is 100% incorrect for retail sales.
On any VATable goods the customer is charged the Full VAT rate.
They may say the price is "Pre-VAT hike" but the full VAT % is charged. (so the retailer takes the hit out of margin but full VAT rate is charged)
You can't turn round to HMRC and say, I only collected 15% as I was doing an offer.
Full VAT is charged on the Dates requested. There is no argument to that.0 -
On any VATable goods the customer is charged the Full VAT rate.
They may say the price is "Pre-VAT hike" but the full VAT % is charged.
You can't turn round to HMRC and say, I only collected 15% as I was doing an offer.
Full VAT is charged on the Dates requested. There is no argument to that.
The retailer has to pay the VAT based on the final selling price, whether that is passed on to the customer is their choice.
You will not see many 99p items marked up to £1.01.0 -
On any VATable goods the customer is charged the Full VAT rate.
They may say the price is "Pre-VAT hike" but the full VAT % is charged. (so the retailer takes the hit out of margin but full VAT rate is charged)
You can't turn round to HMRC and say, I only collected 15% as I was doing an offer.
Full VAT is charged on the Dates requested. There is no argument to that.
Head. Brick wall.
You are correct. But this is an*l to the absolute extreme.
Tescos held back VAT increases. One simple example. They just reduced the profit margin on the products to keep the price static when VAT went up.
Come on Really, surely you are not going to seriously argue the above?0 -
The retailer has to pay the VAT based on the final selling price, whether that is passed on to the customer is their choice.
No the retailer pays the VAT on buying. The customer pays the VAT on buying.
It is a buying TAX, the shop collect it on behalf of HMRC from the customer. Otherwise you would not get a VAT receipt?
As I said if a store is saying pre VAT increase they are charging you full VAT increase just lowering the Pre VAT price (lowering Margin).0 -
Graham_Devon wrote: »Head. Brick wall.
You are correct. But this is an*l to the absolute extreme.
Tescos held back VAT increases. One simple example. They just reduced the profit margin on the products to keep the price static when VAT went up.
Come on Really, surely you are not going to seriously argue the above?
Tesco have not increased fuel duty or the cost of goods for over 1 year now?
Err I think I might with food inflation going up and supermarkets making very healthy profits.
Would a point not be if they had lowered their pre-vat prices should they not be making less profit at a lower margin than 2009 and before?
I find it hard to believe everyone swallow the line "we have not put up prices" the simple truth is they have, food inflation has gone up, so have their profits.
Unless everyone is paying the same for the food etc they are being very naieve, of course they have put prices up.
A lot of your food will not be at the 20% tax rate. That could be another good reason it has not gone up.0 -
No the retailer pays the VAT on buying. The customer pays the VAT on buying.
It is a buying TAX, the shop collect it on behalf of HMRC from the customer. Otherwise you would not get a VAT receipt?
As I said if a store is saying pre VAT increase they are charging you full VAT increase just lowering the Pre VAT price (lowering Margin).
As it is getting a little pedantic, I should point out that the retailer claims back the VAT on buying. But my main point is that a rise in VAT does not necessarily mean an increase in price to the final customer.0 -
The VAT increasing last year as only reverting back to the original rate anyway, I would hardly call it an actual increase in taxes, more a re-alignment after a shock.
If the government never reduced taxes, and CPI fell negative... its would be pretty hard to bring inflation to a normal level of 2% on the basis that interest rates were already at 0.5%.
So how just how can they stimulate growth.
By having higher inflation, they can get companies to pay private sector payrises, which could buy us out with SOME growth... while public sector go through a phaze of freezes.
At the end of the day, we are talking economics, we are talking about a recovery... people do find a compromise to living standards as a result, we had a good ruyn 1995 to 2008... and now we are all paying some kind of price... some more than others.
Raising interest rates will not stimulate the economy, it will encourage people to save, exactly the opposite of what the government needs.
IMO, rates will be low for good reason for a very long time.
Its easier to maintain higher inflation than it is to stimulate when everything points to deflation... ASK JAPAN!... 20 years of virtually low growth deflation...Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
I believe Japan has had a decade of low growth, near deflation and close on 0% interest rates. Take from that what you wish.
I do believ rates are going to rise soon and anyone who is telying on them staying where they are has made a big mistake.0
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