inflation too fall sharply

DervProf

howee wrote: »

Its just maths the biggie was/is VAT and when that is no longer adjusted for (Feb), the inflation rate will fall by 1.3% points.

And we'll still be paying a fair bit more for many things than we were 12, 18 or 36 months ago.

Which is a bad thing, unless it's houses, right ?

sheffield_lad

Batchy wrote: »

Might have 2.5%increase in VAT Dropping out but it's the fuel increases and extra cost of transportation, extra costs of energy for cooling and heating , even packaging that will keep inflation high!

But its been like this for well over a year which means all of this will drop out. Thats the simple mater it has to its maths. If we had only seen increases in the last 12mths your suggestion would have been correct.

Only time will tell but most economic forecasters are predicting 2/2.5% by the end of the year.

michaels

Are there really people who think when the rate of inflation decreases (but remains positive) prices have fallen? A sad indictment on our education system if that is the case.

EchoLocation wrote: »

I'm aware of how inflation is measured, I was pointing out that it's the prices in the real world that affect people, not a percentage on a spreadsheet. Inflation is never properly explained - deliberately so imo - when reported, and it's presented to us as prices are 'falling', when in actual fact prices are still increasing only at a slower rate.

globalds

Does the recent 5 or 6% increase in rail travel get factored in.

That must have been a noticeable increase for a load of people.

Graham_Devon

michaels wrote: »

Are there really people who think when the rate of inflation decreases (but remains positive) prices have fallen? A sad indictment on our education system if that is the case.

Every news reporter....it seems!

Just wait until the inflation number is out this month, and the reports of "falling living costs" are out in abundance.

sheffield_lad

I can see where you are coming from with the 'falling costs' but think the news channels especially the BBC are so negative when reporting anything on the economy.

I imagine the BBC will report a big drop in inflation as 'inflation has dropped by over 1.3% but this is not as big a figure as some economists had predicted or hoped' giving the good news out yet turning it into bad.

I used to enjoy BBC news channels and radio but they have gone way too left since the coalition gov came in and its poor from such a proud corporation.