CPI falls to 2.5%, RPI falls to 2.9%

HAMISH_MCTAVISH

The annual rate of inflation in the UK, as measured by the Consumer Prices Index (CPI), fell back to 2.5% in August from 2.6% in July, the Office of National Statistics said.

The fall was partly due to smaller rises in furniture and gas prices.

The Retail Prices Index (RPI) inflation measure, which includes housing costs, fell to 2.9% from 3.2% in July.

http://www.bbc.co.uk/news/business-19633582

Graham_Devon

What's more interesting is the announcement that the ONS are looking to change RPI measures, which will lead to lower returns for many, suggesting they are looking to lower the level reported in RPI.

Will they engineer lower inflation? You can pretty much bet your bottom dollar! Appears they want it more in line with the favored CPI measure.

Its described to be particularly detrimental to those holding index linked investments or gilts.

chewmylegoff

Graham_Devon wrote: »

What's more interesting is the announcement that the ONS are looking to change RPI measures, which will lead to lower returns for many, suggesting they are looking to lower the level reported in RPI.

i'm not sure the ONS is actually "looking to change" RPI

my reading is that the ONS is consulting with the public by saying "RPI and CPI are different because of X, do you think we should change RPI or leave it alone".

so why not write to them and say why you think it should stay the same? probably more effective than speculating about it here.

GeorgeHowell

No doubt the desire is to phase RPI out altogether. It would please the EU, and help the government to save money to waste it on other things.

Graham_Devon

chewmylegoff wrote: »

so why not write to them and say why you think it should stay the same? probably more effective than speculating about it here.

Do you know how silly this sounds? I'm well aware that recently you have taken a liking to my leg, but seriously...this is a discuss the economy board. If I'm not allowed to mention it without such a silly pull down remark, then what is the forum for?

I got my information from the FT. Presumably you'd advise the same to them, and not to print their worries?

chewmylegoff

Graham_Devon wrote: »

Do you know how silly this sounds? I'm well aware that recently you have taken a liking to my leg, but seriously...this is a discuss the economy board. If I'm not allowed to mention it without such a silly pull down remark, then what is the forum for?

I got my information from the FT. Presumably you'd advise the same to them, and not to print their worries?

Why is it silly to suggest you take part in their consultation which is designed for the sole purpose of finding out about people's views on whether RPI should be changed or not? I didnt tell you that you werent allowed to comment either. Ultra paranoia on your part if you think that was designed as a "pull down" remark. Seems no one can say anything to you without eliciting a cry baby overreaction.

On your second point, I am pleased to be informed that your postings on here have "national press" status.

Perhaps it is on that basis that you will not be taking part in the consultation - your concerns have already been adequately flagged to the ONS.

Graham_Devon

chewmylegoff wrote: »

On your second point, I am pleased to be informed that your postings on here have "national press" status.

The good new is this absolute pathetic nonsense, along with the whole crybaby thing will go down a storm with many on this board.

Instant move up the ranks for you me thinks. You may even get your very own gang!

BTW, I highly doubt the word "consultation" means asking the nation. Happy to be proven wrong, but until that point, I'd suggest you are talking out of your rear to score cheap points for some unknown reason. As you are suggesting I do such a thing, I assume you could tell me how and where?

CLAPTON

most economists take the view that officialfigures for inflation over estimate the cost of living.
this is because real people like us change our buying habits when prices either rise or fall
so e.g. if petrol goes up a lot then people reduce their mileage and maybe their speed so the total volume of petrol bought reduces. In the short term this isnt reflected in the inflation index.

Loughton_Monkey

Well, without wanting to throw my toys out of the pram, I declare my own interest only in terms of my RPI-linked final salary schemes. As long as I get good increases, I'm happy.

In passing, I would say that RPI is just like HPI. Just because house prices go up 5% in your area, doesn't mean that your house is worth 5% more. So 2.9% increase in RPI doesn't mean my costs go up by 2.9%. I'm more linked to the price of gin.

[ps - whilst posting - thanks for the invitation and rules of the gang, Chewy, but rule 33 (b) is a bit confusing. 10 cheap points for a 'pull down' is OK, but how many do we get for a 'put down'?]

CLAPTON

Loughton_Monkey wrote: »

Well, without wanting to throw my toys out of the pram, I declare my own interest only in terms of my RPI-linked final salary schemes. As long as I get good increases, I'm happy.

In passing, I would say that RPI is just like HPI. Just because house prices go up 5% in your area, doesn't mean that your house is worth 5% more. So 2.9% increase in RPI doesn't mean my costs go up by 2.9%. I'm more linked to the price of gin.

[ps - whilst posting - thanks for the invitation and rules of the gang, Chewy, but rule 33 (b) is a bit confusing. 10 cheap points for a 'pull down' is OK, but how many do we get for a 'put down'?]

You really ought to develop more catholic tasts.
then if the price of gin goes up you could then switch to cheaper drinks

HAMISH_MCTAVISH

Graham_Devon wrote: »

I highly doubt the word "consultation" means asking the nation.

:rotfl::rotfl::rotfl::rotfl::rotfl:

Oh dear.....