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CPI hits records at 5.2%
Comments
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The poor pensioners losing money on savings avoid the mention this month, other than they will not be as poor of course.;)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 accommodation.
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.Some will but the vast majority of bungalows are lived in by the elderly, My folks moved in one from a 3 bed house this year and their heating bill is nearly half of their 3 bed semi.
But thank for a reasoned response and understanding what I said in the context I said it.
As you said personal inflation will be different. I know in my Motheres case the fuel cost is perhaps 30/40% of ours but that it represents perhaps 200% more (as a proportion) of her income. Therefore a 20% increase in that element of her different basket takes her personal inflation up higher than the 5.3/5.6 headline.
Possibly more so in that she doesn't consume the electronic goodies or pay a mortgage that contribute to deflationary elements in the figures either.
Thanks son, I'll scrape together an extra 10 bob note for your Xmas box.
At lunch time today some twerp on BBC news said "Pensioners will be pleased, that should take them up to 130 quid a week".
Don't insult our intelligence; our savings are being taxed at more like 10% by taxation-by-inflation and then perhaps the special pensioner 30% income tax rate. To try to keep the real debt ridden banking system from falling over together with all those liar loan mortgage payers; taking down the whole Ponzi scheme. The only thing that is keeping the merry-go round moving is the funny printed money being poured into it; much of which is going directly into something non productive, that the owners will still have regardless of the intervening chaos.
So we are going to break out the elder flower cordial to celebrate a 5.2% increase in a joke level of state pension !
WoW.
RULE OF 720 -
JonnyBravo wrote: »It can be read either way. Whatever. You meant this, I meant that blah blah blah....
What is funny is how accurate the powers that be were with their graph. Like we didn't already know but.....
THEY ARE PANTS!
Indeed, being incapable of rational thought and childish backtracking aside, it seems it was beyond their wildish dreams that inflation would be over 4%ish when they made that.
I guess a lot has changed since they made those charts though.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Indeed, pain today. Hopefully next years 5.2% will more than cover her personal inflation for next year.
Pensioners are worse off in current years of rising inflation but better of the following year if inflation falls back.
It's a funny system you have to see it as backward facing so next years rise cover this years losses.
So in a years pain, it should even out in the end.
So visa versa should energy fall like in 2008 or stay static next year her personal inflation will look better than the average.
I appreciate what you are saying in theory.
I do know that the pension increases nowhere match the increase in living expenses in reality between energy prices, food and council tax rises.
Energy prices aren't going to go down at best they will be held for a year or two.
The pensioner heat benefit, recently reduced, should really have been a pension increase (taxed for those who pay tax) and consolidated. It was an acknowledgement of under provison in basic pension and it was politically easier to call it a benefit.
Where she lives they are also reviewing the bus pass arrangement (she is dependent it on and become used to it in monetary terms) so that will start to pay again yet further erosion."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
John_Pierpoint wrote: »
Thanks son, I'll scrape together an extra 10 bob note for your Xmas box.
At lunch time today some twerp on BBC news said "Pensioners will be pleased, that should take them up to 130 quid a week".
So we are going to break out the elder flower cordial to celebrate a 5.2% increase in a joke level of state pension !
An orange and a Wearthers will do;)
As always it is the middle ground pensioners that get hit. If you are eligible for benefit/pension guarantee you are cushioned, if you have modest savings with basic pension you are hit hardest and if you get a good pension, but not mega rich, just hit less hard."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Oh well they will not be able to hide behind the "VAT increase effect" reason much longer
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Energy prices, food and council tax rises.
Energy prices aren't going to go down at best they will be held for a year or two.
Council tax should be frozen next year, I am not convinced energy will carry on growing up in the short term.
China submitted slowing GDP again today,
If the world downturns again energy should fall again.0 -
grizzly1911 wrote: »
As always it is the middle ground pensioners that get hit. If you are eligible for benefit/pension guarantee you are cushioned, if you have modest savings with basic pension you are hit hardest and if you get a good pension, but not mega rich, just hit less hard.
You need to get used to things on here, the people who support the "poor" pensioners (basically a thin veil for a higher base rate ).
They are the ones that say pensioners have enjoyed the boom and have great wealth from it. They have taken the wealth from the young so want their assets to fall.
I always enjoy the inflation thread to see those that want redistribution of wealth arguing for those poor people who's assets they want.
0 -
But out of interest here is the recent forecast.
2009
GDP
2009
Still cant see the base rate going up to 5% for years though. ;00 -
Still cant see the base rate going up to 5% for years though. ;0
You should have said "it"
This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
You should have said "it"
OMG!!! Joe!! Really is trying to carry on the argument! Tell him off!!!
It's plainly obvious he wasn't talking about base rates on the other thread!! I'd have just agreed and said I got it wrong, instead of the pretence that I was talking about something else!!
Even the reply was to a post about the CEBR suggesting the BOE had got inflation wrong!!As far as I can tell The BOE have been fairly spot on.
But they may put it up a tiny bit if we do grow quickly, but inflation is not that high really.
Cant see it going any where near 5% for years TBH.
Really 2 may aswell just claim he was talking about house prices, for all the sense it makes for him to suggest actually he was talking about base rates! It would have been useful to have included a base rate graph, instead of the inflation graph in that case.
"Can't see it going any where near 5% for years TBH" - That's not said in relation to the graph then!?
Deary me.0
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