CPI hits records at 5.2%

Graham_Devon

The rate of Consumer Prices Index (CPI) inflation in the UK matched its record high in September, rising to 5.2% from 4.5% the month before.

An increase in energy costs was behind a large proportion of the rise.

The 5.2% rate is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.

The Retail Prices Index (RPI) - which includes mortgage interest payments - rose to 5.6% from 5.2%.

The latest RPI measure is the highest annual rate since June 1991.

The CPI measure is way ahead of the Bank of England's target rate of 2%. However, Bank governor Mervyn King still expects inflation to begin falling next year, once factors such as January's VAT rise drop out of the equation.

But the rise in the cost of living highlights the risk of the Bank's latest move to revive the economy through further quantitative easing, which could help to stoke inflation.

CPI has never been higher than 5.2%. However, it could rise even further.

Madness.

http://www.bbc.co.uk/news/business-15344297

Blacklight

That's because the measure hasn't been around long Graham. Have a look at historical inflation figures for something that has some history.

John_Pierpoint

So what is the retain prices index annual rise?. 5.6% as bad as when Thatcher had been trying to kill the inflation caused by Lawson's quantitative easing cure for the 1987 minor wobble in the capital markets.

Mind you in those halcyon days:
Throughout the 1980s revenue from the 90% tax on North Sea oil extraction was used as a short-term funding source to balance the economy and pay the costs of reform.[82]

You ain't seen nothing yet.

[We won't bother with the cost of living for the lumpen proletariat, that might give a feeling of distortion towards the mode not the mean income].

shortchanged_2

Oh well at least I have to give credit to Mervyn King and the BoE on this one because it is the only forecast they have correctly predicted over the past god knows how many years.

JonnyBravo

Graham_Devon wrote: »

CPI has never been higher than 5.2%. However, it could rise even further.

Madness.

Madness?
Not really. Seems like the most sensible (only?) real long term solution to the worlds debt problems. We've just got to "muddle through" til it's taken enough of an effect.

Really2

The poor pensioners losing money on savings avoid the mention this month, other than they will not be as poor of course.;)

Graham_Devon

Really2 wrote: »

The poor pensioners losing money on savings avoid the mention this month, other than they will not be as poor of course.;)

Actually they will.

You need to look at pensioners inflation rates to make that comparison. 5.2% increase will help them, but they will still be a lot poorer what with 15% hikes in gas and electric etc.

Really2

Graham_Devon wrote: »

Actually they will.

You need to look at pensioners inflation rates to make that comparison. 5.2% increase will help them, but they will still be a lot poorer what with 15% hikes in gas and electric etc.

I presume their gas and electric bill is a bit lower than their whole pension though.

It will have added over £20 per month to a single pension, average bill increase around £14PM

But you would think a pensioners bill would be slightly lower than average as many will be in smaller accomodation.

it is how the percentages effect the nominal figures not a case of, look 15% is bigger than 5.2%.

In reality if their general inflation stayed at 5.2% from April next year they would in theory see no change in living standards.

Graham_Devon

Really2 wrote: »

I presume their gas and electric bill is a bit lower than their whole pension though.

Did I even imply it wasn't?! What is that sentence all about!? If you are going to argue, at least get a grip.

It will have added over £20 per month to a single pension, average bill increase around £14PM

But you would think a pensioners bill would be slightly lower than average as many will be in smaller accomodation.

Whats the £14pm? Just electric / gas? If so, think about what you have just said.

it is how the percentages effect the nominal figures not a case of, look 15% is bigger than 5.2%.

Again, I didn't imply it was.

In reality if their general inflation stayed at 5.2% from April next year they would in theory see no change in living standards.

Yes, but that's not reality.

Another dancing around reply from Really2, full of assumptions, answers which have nothing to do with what was said, and putting words into mouths.

You appear to be arguing against what I said. Therefore, are you suggesting that (and see the difference, I'm asking you if you are suggesting) pensioners will be no worse off this year because of a 5.2% increase in the state pension?

Really2

Yes Graham,


Using a bit of logic to you = Dancing around.


You should take up drama.

So to make it clear again although it was clear the first time.

From April next year. Providing their personal inflation is not higher than 5.2% across the whole year (and they don't spend more than they receive) they should see no difference in living standards across the year.


I am not arguing against what you said, the rise is a current match to current inflation on a basket of goods, energy is included in that.
I Really doubt inflation will be 5.2% for the whole of next year, so worse of this year, but next year should be slightly easier on their pockets.

Graham_Devon

Really2 wrote: »

Yes Graham,


Using a bit of logic to you = Dancing around.


You should take up drama.

It wasn't logic. You were imlying I had stated that electric / gas bills were more than an entire pensioners state pension. Something I had not suggested, implied, or even hinted at.

It's what most of your arguments require. Liberal doses or made up nonsense, one assumes, to gain the moral forum politics high ground.

You never answered my question. So I can either:

A) assume that you are actually arguing that pensioners will be no worse off this year thanks to a 5.2% state pension increase...But I don't think you are quite that daft.

or Assume this was solely an attempt to somewhat remove all context of what I had said to gain moral highground.

Unfortunately I'm going to have to go for B, and wish you a good day.