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Now they're considering reneging on September CPI!

Just heard on the news that the Government consider this Septembers CPI figure 'a peak' and so they're trying to get out of using it to increase benefits (which presumably includes pensions). One idea is to use an average figure for the whole year.

How can we trust this bunch to keep to their promises? It's only a few months since they introduced the triple lock for pensions , now they're chucking it out 'cos it will cost too much.

I don't know why they don't just go the whole hog and say "you know, we've no intention of keeping to any commitments, so each April, we'll just make up a figure for everyone except us and our chums in the Bank of England".

Can anyone work out what the average CPI figure for the year to September would be?
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Comments

  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    The average for the year to September 2011 is the figure reported, 5.2%. It is the effect of all price increases for that period.
    Any other calculation is just playing with statistics or is that lies.
    The only thing that is constant is change.
  • RichandJ
    RichandJ Posts: 1,087 Forumite
    4.16%

    that's the average of all the monthly increases reported so caveated as zyg789's post.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • KMK
    KMK Posts: 271 Forumite
    It's absolutely outrageous. It's bad enough that CPI was adopted in such an underhand way without consultation and now the same is happening with this. The truth is they did not expect CPI to be so high in September and are now desperately trying to retrieve the situation after their misjudgement with this shameful move.

    Two years ago we got nothing because RPI was at 0%. If this year it had been the same, they would not have sought to change the September linking.

    Plus of course retired MPs, including many of the very individuals who exploited us via the expenses scandal, are still getting RPI on their pensions.

    "All in it together????" Don't know how they can live with themselves.
  • Old_Slaphead
    Old_Slaphead Posts: 2,749 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    KMK wrote: »
    Two years ago we got nothing because RPI was at 0%. If this year it had been the same, they would not have sought to change the September linking.

    If you want to be pedantic RPI was -1.42% so you should have had a reduction.

    Had you have been on CPI that year (and the previous one when you had a 5.0% increase) you would have been far better off.

    CPI isn't alway lower!
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    RichandJ wrote: »
    4.16%

    that's the average of all the monthly increases reported so caveated as zyg789's post.

    But the increase reported for October 2010 was for the YEAR to 31 October 2010. The given figure is for the previous YEAR.
    So if you have added up the increases each month then you have covered a 23 month period.

    There is no logic behind this calcuklation or idea.
    The only thing that is constant is change.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    If you want to be pedantic RPI was -1.42% so you should have had a reduction.

    Had you have been on CPI that year (and the previous one when you had a 5.0% increase) you would have been far better off.

    CPI isn't alway lower!

    But it is for the majority of the time.
    Did you know it includes stockbrokers fees which are quoted as a percentage thus only increasing when stockbrokers are poor.
    The only thing that is constant is change.
  • JohnB47
    JohnB47 Posts: 2,690 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It's all conjecture of course but the BBC Website is now saying:

    "It is not thought that any change to the planned 5.2% rise in pensions is being considered.

    The BBC News channel's chief political correspondent Norman Smith said one possible option could be raising benefits in line with the average inflation rate for the year, rather than the September figure."

    So the BBC are treating pensions as being separate to benefits.

    Also, it quotes Nick Clegg as saying the government would "not balance the books on the backs of the poor". Based on this ConLib governments track record of pre election statements of intent and post election actions, I can only conclude that that is exactly what they will do.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    I still don't see the diference between the inflation rate for the YEAR and the average inflation rate for the YEAR
    The only thing that is constant is change.
  • RichandJ
    RichandJ Posts: 1,087 Forumite
    zygurat789 wrote: »
    I still don't see the diference between the inflation rate for the YEAR and the average inflation rate for the YEAR

    The September figures (announced mid October) are the increase in prices for the year to end September, not an average. I haven't read the report, but presumed an average would be the average of the figures from Oct 10 to Sep 11, hence 4.16%.
    It only takes one tree to make a thousand matches, it only takes one match to burn a thousand trees. As well, the cars are all passing me, bright lights are flashing me.

    Johnny Was. Once.

    Why did he think "systolic" ?
  • Old_Slaphead
    Old_Slaphead Posts: 2,749 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    zygurat789 wrote: »
    I still don't see the diference between the inflation rate for the YEAR and the average inflation rate for the YEAR

    Infl rate for year is Sept 2011 vs Sept 2010

    Average inflation for year is

    Sept 2011 vs Sept 2010
    Aug 2011 vs Aug 2010
    July 2011 vs July 2010
    June 2011 vs June 2010 etc etc back to Oct 2010 vs Oct 2009

    - with total divided by 12
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