Cpi+0.2%>2.90/rpi+0.2%>3.3%

grizzly1911

ukcarper wrote: »

Your take home pay would have increased from £8688 a year to £9617 this year an increase of 9.7%.

It was a express a ratio not an absolute .

ukcarper

grizzly1911 wrote: »

It was a express a ratio not an absolute .

I was just pointing out that even with out a pay rise your nominal take home pay would have increased meaning that the overall reduction in real terms is reduced.

wotsthat

Graham_Devon wrote: »

What it appears you are saying is that if you don't spend money on goods that are inflating in price, you can reduce how inflation effects you?

Which seems rather obvious. However, if, like Ironwolf, you do buy stuff to eat week in week out and don't keep racing to the bottom in order to avoid inflation, you will be hit with it.

That's exactly what I'm saying.

Ironwolf isn't someone living on the absolute poverty line. He CHOOSES to spend 25% of his grocery bill on an item inflating by 12.5% pa. Presumably his reaction to the higher price of turkey is to prioritise spending or behaviour in other areas to ensure the same consumption of turkey. It's not racing to the bottom.

I'm sure that to poor Africans this seems as bizarre as male grooming products or buying cat clothing. Such is the luxury that wealth can afford.

Graham_Devon

wotsthat wrote: »

That's exactly what I'm saying.

Ironwolf isn't someone living on the absolute poverty line. He CHOOSES to spend 25% of his grocery bill on an item inflating by 12.5% pa. Presumably his reaction to the higher price of turkey is to prioritise spending or behaviour in other areas to ensure the same consumption of turkey. It's not racing to the bottom.

I'm sure that to poor Africans this seems as bizarre as male grooming products or buying cat clothing. Such is the luxury that wealth can afford.

OK, so he avoids buying lunches out and starts making sandwiches.

The meat he buys for his sandwiches starts going up, so he should avoid the meat in his sandwiches.

So what should he buy that's not going up, and therefore he doesn't have to avoid?

ukcarper

Graham_Devon wrote: »

OK, so he avoids buying lunches out and starts making sandwiches.

The meat he buys for his sandwiches starts going up, so he should avoid the meat in his sandwiches.

So what should he buy that's not going up, and therefore he doesn't have to avoid?

Free range eggs £1 for 6 in tescos

wotsthat

Graham_Devon wrote: »

OK, so he avoids buying lunches out and starts making sandwiches.

The meat he buys for his sandwiches starts going up, so he should avoid the meat in his sandwiches.

So what should he buy that's not going up, and therefore he doesn't have to avoid?

He's rich. He doesn't have to worry about it. I can't see what you're not getting - he would rather his personal inflation rate went up than finding a cheaper alternative.

He's decided that in his quest to be buff he'll just pay the extra for turkey. If he's paying, say, £50/month extra for turkey he'll have to pay £50/ less on something else. Maybe a non-essential that is lower down the priority list?

wotsthat

ukcarper wrote: »

Free range eggs £1 for 6 in tescos

You'll only have to prove to an expert's satisfaction that the amino acid profile of eggs is suitable to replace turkey in a bodybuilder's diet.

If you can't or won't this will be taken as proof that everyone's personal inflation rate is much higher than CPI.

Graham_Devon

ukcarper wrote: »

Free range eggs £1 for 6 in tescos

So he is allowed eggs?

What happens when the offer ends? Haslet?

The point is, you can only avoid inflation by not buying something. Basically, if you continually downgrade yourself, you can buy cheaper stuff - which is absolutely obvious.

That in itself doesn't avoid inflation, you are still buying a product which inflates. Just at the point you switch it costs less than your other product. To avoid the effects of inflation, you'll have to continually switch to an inferior product. Again, this si simply obvious.

It's not a particularly great way to live life though, IMO. You are continually racing to the bottom, and I don't believe Turkey for a sandwich is the height of extravagance.

It's somewhat bizzare that all those who give this advice not to buy inflating goods are the very same people ushering on inflation in house prices and ushering people to buy them. You'd imagine that the advice would be the same on any inflating good. But no, houses should be bough, turkey avoided.

grizzly1911

ukcarper wrote: »

Free range eggs £1 for 6 in tescos

I brought some from coop (the only eggs that had left not surprisingly) for £2.40 at the end of June.

Presumably if I had thought hey were worth it and always wanted to buy them whatever inflation they attracted I would be subject too.

Perhaps we could advise the ONS to shop around for the cheapest substitute each month that would help the statistics a bit;)

ukcarper

Graham_Devon wrote: »

So he is allowed eggs?

What happens when the offer ends? Haslet?

The point is, you can only avoid inflation by not buying something. Basically, if you continually downgrade yourself, you can buy cheaper stuff - which is absolutely obvious.

That in itself doesn't avoid inflation, you are still buying a product which inflates. Just at the point you switch it costs less than your other product. To avoid the effects of inflation, you'll have to continually switch to an inferior product. Again, this si simply obvious.

It's not a particularly great way to live life though, IMO. You are continually racing to the bottom, and I don't believe Turkey for a sandwich is the height of extravagance.

It's somewhat bizzare that all those who give this advice not to buy inflating goods are the very same people ushering on inflation in house prices and ushering people to buy them. You'd imagine that the advice would be the same on any inflating good. But no, houses should be bough, turkey avoided.

I was joking but as you are taking it so seriously, to get things in perspective never had turkey in my childhood to much of a luxury in fact chicken was a treat.