We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Salary increases keeping up with RPI since 2007. As it happens.
Comments
-
Thank you - up to this point I was despairing about a thread that had started by adding percent changes over time (Mexico goes through a tough patch and transport minister announces that the proposed number of lanes on a new highway had been reduced by 50% from 8 to 4, following year finances not so ticht and the number of lanes is increased again by 50%, adding the 50% decrease to the 50% increase obviously gives a total of no change
) and then had index percentage changes mangled.
More substantively, over most 4 year periods real incomes have risen not held steady (allowing housing costs as a proportion of income to increase) - in this period not only have real incomes fallen but increases in the price of other necessities has been offset by reductions in housing costs as the result of the fall in interest rates - conclusion , unless real incomes start increasing again then any increase in interest rates is likely to result in house prices falling.CPI Jan 2011 / Jan 2008 * 100 = 116.9 / 105.5 * 100 = 11.28% increase over three years.
RPI 229.0 / 209.8 * 100 = 9.15%
The Office for National Statistics provide CPI and RPI data. The index values for recent years have been:D7BT CPI (2005 = 100) CHAW All items RPI (Jan 1987 = 100) 2007 Jan CPI 103.2 RPI 201.6 2007 Feb CPI 103.7 RPI 203.1 2007 Mar CPI 104.2 RPI 204.4 2007 Apr CPI 104.5 RPI 205.4 2007 May CPI 104.8 RPI 206.2 2007 Jun CPI 105.0 RPI 207.3 2007 Jul CPI 104.4 RPI 206.1 2007 Aug CPI 104.7 RPI 207.3 2007 Sep CPI 104.8 RPI 208.0 2007 Oct CPI 105.3 RPI 208.9 2007 Nov CPI 105.6 RPI 209.7 2007 Dec CPI 106.2 RPI 210.9 2008 Jan CPI 105.5 RPI 209.8 2008 Feb CPI 106.3 RPI 211.4 2008 Mar CPI 106.7 RPI 212.1 2008 Apr CPI 107.6 RPI 214.0 2008 May CPI 108.3 RPI 215.1 2008 Jun CPI 109.0 RPI 216.8 2008 Jul CPI 109.0 RPI 216.5 2008 Aug CPI 109.7 RPI 217.2 2008 Sep CPI 110.3 RPI 218.4 2008 Oct CPI 110.0 RPI 217.7 2008 Nov CPI 109.9 RPI 216.0 2008 Dec CPI 109.5 RPI 212.9 2009 Jan CPI 108.7 RPI 210.1 2009 Feb CPI 109.6 RPI 211.4 2009 Mar CPI 109.8 RPI 211.3 2009 Apr CPI 110.1 RPI 211.5 2009 May CPI 110.7 RPI 212.8 2009 Jun CPI 111.0 RPI 213.4 2009 Jul CPI 110.9 RPI 213.4 2009 Aug CPI 111.4 RPI 214.4 2009 Sep CPI 111.5 RPI 215.3 2009 Oct CPI 111.7 RPI 216.0 2009 Nov CPI 112.0 RPI 216.6 2009 Dec CPI 112.6 RPI 218.0 2010 Jan CPI 112.4 RPI 217.9 2010 Feb CPI 112.9 RPI 219.2 2010 Mar CPI 113.5 RPI 220.7 2010 Apr CPI 114.2 RPI 222.8 2010 May CPI 114.4 RPI 223.6 2010 Jun CPI 114.6 RPI 224.1 2010 Jul CPI 114.3 RPI 223.6 2010 Aug CPI 114.9 RPI 224.5 2010 Sep CPI 114.9 RPI 225.3 2010 Oct CPI 115.2 RPI 225.8 2010 Nov CPI 115.6 RPI 226.8 2010 Dec CPI 116.8 RPI 228.4 2011 Jan CPI 116.9 RPI 229.0 2011 Feb CPI 117.8 RPI 231.3 2011 Mar CPI 118.1 RPI 232.5 2011 Apr CPI 119.3 RPI 234.4 2011 May CPI 119.5 RPI 235.2
Note that this is the all items RPI and includes changes in mortgage interest rates. If you want RPI excluding mortgage interest rates there's a series for that as well.
Given the error in the CPI calculation (lack of compounding because the index value wasn't used) it would be nice to know the source of the wage inflation data so that can be looked at by all as well.I think....0 -
That's not generally true. See the ONS figures of 3% increase for public sector and 2% for private sector.Private sector wages are still going up, yet public sector wages haven't gone up gor a couple of years now.
Some examples are probably accurate but I think you have a mistaken impression of how much admin workers in the private sector make, or office cleaners.
They have generally done neither of those things. The public sector contributions, for a given income level in retirement, are very low and there is usually no fund at all for most public sector schemes, though some do have one.The whole point is that these public sector employees have paid a large proportion of their wages into a badly managed pension fund for many years.
To see what the private sector is like, just look at the new plan to improve private sector pension provision, that provides for 8% total from employer and employee with the employer only having to pay 3% of that. While the public sector schemes usually have more like 20%-25% employer contribution.
In the past it was true that public sector pay was lower but that's changed over the years.0 -
That's not generally true. See the ONS figures of 3% increase for public sector and 2% for private sector.
Well that just shows that the statistics are complete rubbish. Have you had your head in the sand, and didn't hear that there has been a public sector pay freeze?Some examples are probably accurate but I think you have a mistaken impression of how much admin workers in the private sector make, or office cleaners.
Well there aren't many cleaners left in the public sector, as it is mainly private contractors.They have generally done neither of those things. The public sector contributions, for a given income level in retirement, are very low and there is usually no fund at all for most public sector schemes, though some do have one.
To see what the private sector is like, just look at the new plan to improve private sector pension provision, that provides for 8% total from employer and employee with the employer only having to pay 3% of that. While the public sector schemes usually have more like 20%-25% employer contribution.
In the past it was true that public sector pay was lower but that's changed over the years.
I think you need to change your sources0 -
I also see things like "Public sector workers get pay rises twice the rate of private sector workers", an October 2009 story. Note that "the year to April 2010" in the figure earlier in the discussion includes that period.Well that just shows that the statistics are complete rubbish. Have you had your head in the sand, and didn't hear that there has been a public sector pay freeze?
That story is also interesting for "It comes in a week when unemployment jumped to 2.47 million as economists predicted it is now inevitable that the numbers out of work will pass three million, matching the job crises seen in the 1980s and 1990s recessions. However the job losses have been largely confined to the private sector, which shed 230,000 jobs between March and June. In the same period the number of public sector workers rose 13,000, pushing the total workforce paid out of taxes beyond 6 million".
Later, if the pay freeze really happens and isn't rendered useless by things like pay for new hires being higher we might see some reduction in the rate of public sector pay increases.
Not that it'll matter too much to those in the private sector, who freezes that don't make the national press instead.0 -
I also see things like "Public sector workers get pay rises twice the rate of private sector workers", an October 2009 story. Note that "the year to April 2010" in the figure earlier in the discussion includes that period.
That story is also interesting for "It comes in a week when unemployment jumped to 2.47 million as economists predicted it is now inevitable that the numbers out of work will pass three million, matching the job crises seen in the 1980s and 1990s recessions. However the job losses have been largely confined to the private sector, which shed 230,000 jobs between March and June. In the same period the number of public sector workers rose 13,000, pushing the total workforce paid out of taxes beyond 6 million".
Later, if the pay freeze really happens and isn't rendered useless by things like pay for new hires being higher we might see some reduction in the rate of public sector pay increases.
Not that it'll matter too much to those in the private sector, who freezes that don't make the national press instead.
Like I said, you must have had your head burried in the sand to not hear that there has been a public sector pay freeze for at least a couple of years. That is a 0% increase. It was only in the press the other day about private sector pay increases being at around 2.6%.0 -
Freezes aren't necessarily universal and it seems that one wasn't, given the increase that happened anyway. The private sector is no stranger to freezes either.0
-
Freezes aren't necessarily universal and it seems that one wasn't, given the increase that happened anyway. The private sector is no stranger to freezes either.
Pay freezes are universal in the public sector. They were imposed by the government...get your facts right.
Did you read what I said about it being different in different businesses??
If you work for a business where there is a pay freeze, and you don't like it, then go and work for another company.
If you work as a teacher, in a hospital, a police officer, a firefighter, or a social worker, etc... then your chances of changing to a job in the private sector are extremely limited.0 -
d.ross, if your just going to dismiss evidence as "rubbish" when it doesn't suit you, there really is no point discussing it with you.
In any event, the distinction between public and private isn't all that relevant.
The salient point is that since 2007 median salaries (private and public sector) have kept up with inflation.0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards