inflation rate up

kidmugsy

The RPI inflation rate was up from November's 2.6%p.a. to December's 2.7%p.a.

Glen_Clark

The biggest expense for most people is probably rent, and thats up about 8%

kidmugsy

Glen_Clark wrote: »

The biggest expense for most people is probably rent

Most? Really?

Vortigern

According to the BBC, inflation fell !

BBC wrote:

The UK's inflation rate, as measured by the Consumer Prices Index, fell to 2% in December, down from 2.1% the month before.
It is the first time inflation has been at or below the government-set target of 2% since November 2009.
The Office for National Statistics said the fall was caused by slower increases in the prices of food.
Inflation as measured by the Retail Prices Index (RPI) rose to 2.7% from 2.6% in November.

My pension is now linked to CPI :mad:

opinions4u

Glen_Clark wrote: »

The biggest expense for most people is probably rent, and thats up about 8%

Most people don't rent.

Glen_Clark

kidmugsy wrote: »

Most? Really?

Fair comment. I should have said many rather than most. The point is that this essential is not included. Wheras luxuries like Blu Ray disc players are.

Cotta

The official figure is 2% for 2013, there is a debate on this subject within the debating forum.

kidmugsy

Glen_Clark wrote: »

The point is that this essential is not included.

I've tried to see whether you're right about that but by golly THEY make it hard to find out. I can see that "housing" plays a large part, but haven't come across a definitive statement either way on housing rents. Maybe I'm not a very good googler.

innovate

kidmugsy wrote: »

I've tried to see whether you're right about that but by golly THEY make it hard to find out. I can see that "housing" plays a large part, but haven't come across a definitive statement either way on housing rents. Maybe I'm not a very good googler.

I believe rents, and mortgage payments, are included in RPI but not in CPI.

Agree, it does need some googling (that I don't fancy doing right now) to figure out what's what.

I am quite angry that people keep saying "inflation is up" or "inflation is down" without qualifying what measure they are talking about. The title of this thread is a good example for an unqualified statement. CH4 News, which I am listening right now, says "inflation is down". Not a beep about CPI vs RPI. Nor is there much beep about the fact that inflation is different for everyone, based on their spending pattern. I reckon my personal inflation has been below 2% for some time, so I am a happy bunny on the numbers. very unhappy though in terms of what the general public are being told.

berbatov10

Fudging the figures because they go with what looks best for the govt.

grey_gym_sock

if you follow the ONS link (earlier in the thread), and download the "Consumer Price Inflation Reference Tables, December 2013" spreadsheet ...

turning to table 44, the RPI includes the following housing costs:
- Rent
- Mortgage interest payments
- Depreciation
- Council taxes & rates
- Water & other charges
- Repairs & maintenance charges
- DIY materials
- Dwelling insurance & ground rent

turning to table 45, housing costs contributed 0.52% out of the 2.7% rise (from december 2012 to december 2013).

CPI includes fewer housing costs - see table 11 - but does still include rent.