Nationwide aug: + 1.3%

Mr._Pricklepants

wotsthat wrote: »

Don't worry he's taken it to the top. If you're polite on Twitter the housing minister will deal with these issues personally. Foxy's always pleasant so it's just a matter of time before this is sorted.

Reuters - 05/09/12 - As part of Prime Minister Cameron's reshuffle of the Cabinet, it was announced that Grant Shapps would no longer be Housing Minister and will take up the position of Conservative Party Chairman.
Asked for a reaction, Mr. Shapps mumbled; "Glad to leave that portfolio behind me. I was being stalked, harassed and threatened on my Twitter page by a certain Welsh rugby player from Orton Longueville. It's just not worth the hassle anymore."

Eellogofusciouhipoppokunu

wotsthat wrote: »

Mix in a pay rise from 2010, 2011 & 2012 and the story will likely be different.

To take the discussion back to the original point. Inflation hits everyone, but those paying a mortgage will be less impacted than those paying rents and the longer you have a mortgage the more this is true. I think the poster acknowledge that he agreed with this.

I think fundamentally that was the crux of the argument and it has been sorted now, without the need for mathematics and examples. It's just basic common sense that mortgage debt is fixed when you buy the house and so if interest rates stay the same, mortgage payments stay the same. Rents increase with inflation, mortgage payments don't.

Eellogofusciouhipoppokunu

Graham_Devon wrote: »

Fuel is up 38% since June 2007.

I thought we were talking about the period between 2010 and now? No wonder this discussion is confusing, we seem to be flitting about all over the place!

Graham_Devon wrote: »

With inflation generally being taped onto living costs, I don't think anyone would find it easier in general today compared to 2010 to service their mortgage thanks to simple inflation.

ess0two

Eellogofusciouhipoppokunu wrote: »

I thought we were talking about the period between 2010 and now? No wonder this discussion is confisuing, we seem to be flitting about all over the place!

Welcome as new member,in this place the goalposts can be placed where ever suits.
Next we'll be comparing fuel cost from 1971?

Eellogofusciouhipoppokunu

ess0two wrote: »

Welcome as new member,in this place the goalposts can be placed where ever suits.
Next we'll be comparing fuel cost from 1971?

It is a bit random in here.

wotsthat

Graham_Devon wrote: »

My point throughout has been that you have to look at the goods money is spent on, rather than using the CPI rate to create assumptions.

For example...last year...(figures as I recall them)

Food up 11%
Gas / Electricy up 18%
Petrol up 24%
Clothing down 1%

If we consider those to be the staple family outgoings, working out how much better off they are based on a rate of 3.6% is nonsense. Hence why so many articles working out true personal inflation of families is so much higher.

Do you understand how the CPI is calculated? It looks at the typical goods a consumer buys and weights them according to proportion of spending.

The items listed are all included in the CPI calculation.

If someone spends 100% of income on food, utilities and petrol then their personal inflation rate is going to be eye watering especially if they only get a small pay rise. That person can't be used as an example of a typical consumer because fairly obviously they aren't typical. Your chap seems to spend his life eating or driving (while he leaves the heating on full blast at home).

Can you see that 3.6% is a better proxy for discussion when talking about the typical consumer?

Have a look at this - what's your inflation rate - with some rough and ready figures mine's 2.8%. Don't worry - it does the calculations for you.

http://www.bbc.co.uk/news/business-11331052

ukcarper

Graham_Devon wrote: »

Fuel is up 38% since June 2007.

Not linked to any mathmatics people may wish to carry out...just putting the figures across.

so now we are compaing fuel inflation over 5 years to wage onflation ove 1.

Graham_Devon

ukcarper wrote: »

so now we are compaing fuel inflation over 5 years to wage onflation ove 1.

I did state that it wasn't for mathmatical purposes, just putting the figure up. The first thing you do is suggest I'm trying to compare it for mathmatical purposes. What gives?

It's obviously added to confusion, so wish I hadn't bothered. It' was just breaking news on the BBC website, and seemed relative to the discussion (or at least my discussion) surrounding the cost of living increases for staple goods and your questioning me on fuel price increases.

If were still discussing the mathmatics of an arbituary period, then apologies. I thought we'd kinda moved on from that. If we haven;'t, then if I say "yes you are right, i don't understand a thing, I apologise profusely", can we move on?

ukcarper

Graham_Devon wrote: »

I did state that it wasn't for mathmatical purposes, just putting the figure up. The first thing you do is suggest I'm trying to compare it for mathmatical purposes. What gives?

It's obviously added to confusion, so wish I hadn't bothered. It' was just breaking news on the BBC website, and seemed relative to the discussion (or at least my discussion) surrounding the cost of living increases for staple goods and your questioning me on fuel price increases.

If were still discussing the mathmatics of an arbituary period, then apologies. I thought we'd kinda moved on from that. If we haven;'t, then if I say "yes you are right, i don't understand a thing, I apologise profusely", can we move on?

Out of interest weekly pay 2007 £352, 2011 £400

£400 a week now take home £320 a week

£352 a week take home then £274 a week

An increase of almost 28% and that doesn’t include any pay rise this year.

wotsthat

ukcarper wrote: »

Out of interest weekly pay 2007 £352, 2011 £400

£400 a week now take home £320 a week

£352 a week take home then £274 a week

An increase of almost 28% and that doesn’t include any pay rise this year.

Fuel's up by 38% though - anyone with only a 28% pay rise must be really feeling the pinch:(

EDIT: CPI up by 17% since Jan 2007 - some people might actually be better off than 2007!