Will the price rises introduced today feed through into RPI?

cepheus

There is much discussion on the price rises imposed from today. However how many of these feed through to the official statistics such as RPI? Are some of these an indirect effect of quantitative easing and the supply of money?

For millions who will see changes in the welfare benefits system, and a series of price rises announced a while back, his description may ring particularly true in 2013. But while the benefits changes have been well-publicised, many of the price increases have been forgotten about or overlooked. From Monday 1 April, many of us will be paying more to travel by plane, more to have a bath, and in some cases, more to post a parcel.

http://www.bbc.co.uk/news/business-21940859

grizzly1911

cepheus wrote: »

There is much discussion on the price rises imposed from today. However how many of these feed through to the official statistics such as RPI? Are some of these an indirect effect of quantitative easing and the supply of money?


http://www.bbc.co.uk/news/business-21940859

Most peoplke send very few parcels, people can choose whether to fly so It doesn't really matter. Bulk parcel senders for internet shoppers tend to use couriers at negotiated rates.

Water of course is a different matter but people can get meters fitted and make efforts to reduce consumption without materially affecting their quality of life. Personally I would like shareholders to share any investment burden for returns over the longer term. I am sure the regulator will ensure that happens;)

Ark_Welder

Whether the price rises feed into RPI will depend upon whether they are included in the appropriate basket, and their weighting therein.

http://www.ons.gov.uk/ons/rel/cpi/cpi-rpi-basket/2013/index.html

cepheus

Ark_Welder wrote: »

Whether the price rises feed into RPI will depend upon whether they are included in the appropriate basket, and their weighting therein.

http://www.ons.gov.uk/ons/rel/cpi/cpi-rpi-basket/2013/index.html

The reason I ask is because lot of the changes seem to apply to benefit claimants and didn't think it would be clear. I would guess it is a yes.

RPI weights are based primarily on household spending estimates derived from the Living Costs and Food Survey, and relate to expenditures by private households only, excluding the top 4 per cent of households by income and those pensioner households mainly dependent on state benefits. CPI weights are based on National Accounts estimates of household final consumption consistent with the wider CPI population coverage (that is, all private households, residents of institutional households and foreign visitors to the UK