The Cyprus Situation

Glen_Clark

Diesel is something that everybody has to buy, if only indirectly. Practically everything we have has been brought on a diesel burning lorry/ship/train. The food we eat has been farmed with diesel machinery. More people have to buy diesel than anything else I can think of.
I think every other country in Europe keeps diesel prices lower than petrol to control inflation. But maybe increasing diesel prices is more acceptable here because people think it doesn't affect them if they have a petrol car?

Jegersmart

innovate wrote: »

I think you misunderstood - - it wasn't suggested that the price of diesel is directly linke to inflation.

What was said is that the increase in price of diesel over a period of time is probably a better indicator for the level of inflation than any official RPI and CPI figures.

Thanks for the clarification, but the price of diesel is not even an indicator of inflation any more than crude oil is although like oil it can and does contribute somewhat to inflation if that makes sense?

J

Glen_Clark

Jegersmart wrote: »

Thanks for the clarification, but the price of diesel is not even an indicator of inflation any more than crude oil is although like oil it can and does contribute somewhat to inflation if that makes sense?

J

The best indication of inflation is what does your pound actually buy.
If you pick one item it may as well be diesel, because everyone has to buy it every day, one way or another.

Jegersmart

Glen_Clark wrote: »

The best indication of inflation is what does your pound actually buy.
If you pick one item it may as well be diesel, because everyone has to buy it every day, one way or another.

I wouldn't pick diesel/fuel/oil personally but we agree on the definition of inflation - i.e. what does your pound buy:)

All the best

J