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UK CPI inflation in surprise fall in June

13

Comments

  • ILW
    ILW Posts: 18,333 Forumite
    neverdespairgirl wrote: »
    No, prices are still going UP.

    If inflation is 2%, something that costs £100 will cost £102.

    If inflation falls to 1%, the cost of the £102 item is now £103.02.

    A fall means that things are going up in price less than they were.

    Why do so many people have a problem getting that simple fact into their heads?
  • DervProf
    DervProf Posts: 4,035 Forumite
    kabayiri wrote: »
    I don't see any evidence to suggest consumers are not going to be squeezed further in coming years.

    Not to worry, as soon as the banks start lending again, we'll be fine. _party_
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • DervProf
    DervProf Posts: 4,035 Forumite
    ILW wrote: »
    Why do so many people have a problem getting that simple fact into their heads?

    People get confused.

    Inflation 5% = BAD

    Inflation 2% = GOOD

    HPI 10% = FANTASTIC

    HPI 5% = GOOD

    HPI 2% = BAD
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    This caught my eye:
    http://www.statistics.gov.uk/cci/nugget.asp?id=19
    There was also a large upward pressure from fuels and lubricants where prices fell this year by less than a year ago. Petrol pump prices fell by 0.7 pence per litre between May and June this year to stand at 135.6 pence per litre. This movement compares with a fall of 2.6 pence per litre between the same two months a year ago.
    Is there a seasonal reason why petrol prices fall in the summer? Something to do with people spending more time outdoors or on holiday (and therefore not with their vehicles)?
    .....under construction.... COVID is a [discontinued] scam
  • nicko33
    nicko33 Posts: 1,125 Forumite
    neverdespairgirl wrote: »
    No, prices are still going UP.
    except for the things that are getting cheaper, or staying the same
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Milarky wrote: »
    This caught my eye:
    Is there a seasonal reason why petrol prices fall in the summer? Something to do with people spending more time outdoors or on holiday (and therefore not with their vehicles)?

    More likely to do with when other data is released which may effect petrol prices.

    In general it is the driving season in america so usually in normal times prices rise in the summer.
  • ILW
    ILW Posts: 18,333 Forumite
    nicko33 wrote: »
    except for the things that are getting cheaper, or staying the same

    Please explain how with inflation at 4% this could be.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 12 July 2011 at 12:01PM
    ILW wrote: »
    Please explain how with inflation at 4% this could be.

    Not all items inflate at the same level, it is a general inflation figure.

    So I presume he is saying (and rightly) some items may have fell or stayed the same. Just like some may have increased over the average of the basket.
    The slowdown came courtesy of falling prices for games, toys and hobbies, as well as for clothing and footwear.

    Some can't get it in to their heads that some prices may fall even if you have positive inflation figures. :)
  • geneer
    geneer Posts: 4,220 Forumite
    Still more than twice the target then.

    Move along. Nothing to see here.
  • julieq
    julieq Posts: 2,603 Forumite
    So Geneer, what do you think happens in terms of the target when the one off VAT increase drops out of the figures?
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