RPI published today?

grizzly1911

CLAPTON wrote: »

If you stop buying them then they will drop out of the CPI; is there e.g. evidence that the number of plasma screens being bought has fallen significantly?

The issue is the silly euphoria because the rate of inflation is only 2% even though many people haven't had comparable increase in income.

That is no reason to critise the index. (don't shoot the messenger)

Fair point but they do like to use the index to fit all demographic groups. Different groups are impacted very differently but conveniently side stepped.

CLAPTON

grizzly1911 wrote: »

Fair point but they do like to use the index to fit all demographic groups. Different groups are impacted very differently but conveniently side stepped.

it's an average

it's used for indexing certain benefits/pensions/incomes/saving rates/interest charges

it would be difficult (and open to criticism) if we had lots of different indexes for different purposes.

michaels

GeorgeHowell wrote: »

I don't think it's the BOE's choice as such. More likely the Treasury's and it consequently applying subtle and not so subtle pressure on the BOE and the MPC to the effect that it would be "irresponsible" not to cooperate with getting out of recession as the priority. However, as we see, even with 0.5% base rate recession keeps CPI below 2.5% once things settle down. The Treasury might now lean on the BOE to print more money.

Exactly - a good proxy for how loose or tight monetary policy is is the real (inflation adjsuted) interest rate - this has increased from -450 basis poiints to -200 basis points in the last 12 months - potentially equivalent to a 2.5% increase in the base rate. Unless you feel that the economy needs tighter monetary policy than 12 months ago then by default further monetary easing (however it can be acheived) is required.

michaels

Funny or sad - the BBC were leadin on the fact that this would lead to a much smaller increase in benefits than last year and asking people to email in with how this would affect them...doh in every case the level of benefits remains constant in real terms so there is no difference between this year and last year...if the BBC don't get this how is the general public supposed to understand. Presumably they are all feeling aggreived that last year they got an 'extra' 3 quid and this year it will only be £1.50:rotfl:

A._Badger

michaels wrote: »

Funny or sad - the BBC were leadin on the fact that this would lead to a much smaller increase in benefits than last year and asking people to email in with how this would affect them...doh in every case the level of benefits remains constant in real terms so there is no difference between this year and last year...if the BBC don't get this how is the general public supposed to understand. Presumably they are all feeling aggreived that last year they got an 'extra' 3 quid and this year it will only be £1.50:rotfl:

Well, yes, but what do you expect the BBC to do? Their (chosen) job is to stoke the fires of dissent as much as possible so as to get Labour back in as fast as possible.

And before the howler monkeys kick-up again, just listen to last night's Radio 4 schedule and try pretending that the BBC plays with a straight deck.,

grizzly1911

michaels wrote: »

Funny or sad - the BBC were leadin on the fact that this would lead to a much smaller increase in benefits than last year and asking people to email in with how this would affect them...doh in every case the level of benefits remains constant in real terms so there is no difference between this year and last year...if the BBC don't get this how is the general public supposed to understand. Presumably they are all feeling aggreived that last year they got an 'extra' 3 quid and this year it will only be £1.50:rotfl:

The increase to the majority of pensioners and those on benefits is outstripped by the necessities of life, rent, heat and food which are rising faster than the average. Unless you have surplus in your income to pick and choose and economise then those on low fixed incomes are being hit. There is unlikely to be any respite in the case of necessities for the foreseeable future.

grizzly1911

CLAPTON wrote: »

it's an average

it's used for indexing certain benefits/pensions/incomes/saving rates/interest charges

it would be difficult (and open to criticism) if we had lots of different indexes for different purposes.

I appreciate it is an average. The current indices are used for different purposes and are invented to suit the issues at hand. They are openly criticised.

I doubt there would be so much angst if a more generous one were applied to pensions (taxable) and a lesser one to JSA for the under 25s.

ukcarper

I now know that my rise next year will be 2.2% which will amount to about £20 a month last year my Council Tax and Water Rates increased £8 a month so if they do the same this year I will have £12 to spend on the increases in Gas Electric Food prices etc this shows how people on a lower income are affected disproportionately.

michaels

I thought council tax had been frozen for the last couple of years?

I beleive in the last 12 months standard gas and electric prices have seen a reduction of about 5% and an increase of about 7%?

There is a personal inflation rate calculator on web somewhere - BBC or ONS?

CLAPTON

grizzly1911 wrote: »

I appreciate it is an average. The current indices are used for different purposes and are invented to suit the issues at hand. They are openly criticised.

I doubt there would be so much angst if a more generous one were applied to pensions (taxable) and a lesser one to JSA for the under 25s.

there are only two main indexes CPI and RPI although it's possible to produce any number you like.

pensions are linked to a triple lock... CPI or wage inflation or 2.5% which ever is higher

how much higher than wage inflation do you think would be fair for pensioners, unemployed, disabled etc?