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CPI is 2%.
Comments
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grizzly1911 wrote: »I take your point about noise nut in the extreme example you put forward simply taking it out of the index makes a mockery of the index.
It would be like stopping collecting taxes because it is too difficult and then attacking benefits because it is easier.
It also makes a mockery of saying we have increased state pensions by cpi when for a good many pensioners their individual CPI is much higher with items like energy being a much bigger proportion of their spend.
Beggars the question, why discretionary items are in the basket in the first place, which is often where reductions are seen.
CPI is meant to be about what people actually spend
it is not a measure of 'essential spending'
there are many other indices that measure different type of sub population : I'm sure there is one for retired people (although this would include that chap from Loughton)0 -
CPI is meant to be about what people actually spend
it is not a measure of 'essential spending'
there are many other indices that measure different type of sub population : I'm sure there is one for retired people (although this would include that chap from Loughton)
What people actually spend presactly. Most people buy essentials predominately. Discretionary spend by its nature is stuff you can choose to do without or downgrade.
Admitting essentials inflation was running several points higher than some nebulous basket wouldn't fit the game.
That monkey fellow does acknowledge that inflation doesn't affect him as long as it isn't silly. Is Asda essentials gin comparable to Blue Sapphire or Gordon's ?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: ».....That monkey fellow does acknowledge that inflation doesn't affect him as long as it isn't silly. Is Asda essentials gin comparable to Blue Sapphire or Gordon's ?
No it isn't. Gordon's is, in my opinion, 'best' value. Tanqueray is fine (same distiller) but not worth the extra cost. Bombay Sapphire perfectly drinkable, but not worth the extra ££££.....
I would never say that inflation doesn't affect me. Of course price increases work against me, largely because a lot of my income is not inflation protected. And I don't have any major opportunities to earn more - other than going back to some form of work at the tender age of 64.
Looking back, I could well have lived "very well" during the first 20 years of my working life. But I didn't. Too busy paying mortgage interst, pension payments, and other investment premiums. I know very well what it is like to live 'hand to mouth' [in an ordinary UK sense. Not African].
Only in my last 14 years of working life could I 'live' more comfortably, while still sticking it away for the future. Now I am reaping those rewards. Even now, I live 'well' within my means, which has allowed me to build up a financial cushion against any reasonable unforseen circumstance, which is why inflation is no great issue to me unless it were to become 'hyper'.
If that occurs, I will publish on this board a location at which I will sit on a blanket in a shop doorway, with a little notice asking for the price of a cup of tea [although I will spend the money on gin & tonic]. I ask, in advance, that all posters on here visit, and throw me a few shillings, so I can go into abject poverty with a degree of dignity.
Until then, I plead with you all not to lose any sleep over my current financial status. I am doing 'OK'.0 -
Loughton_Monkey wrote: »Looking back, I could well have lived "very well" during the first 20 years of my working life. But I didn't. Too busy paying mortgage interst, pension payments, and other investment premiums. I know very well what it is like to live 'hand to mouth' [in an ordinary UK sense. Not African].
Until then, I plead with you all not to lose any sleep over my current financial status. I am doing 'OK'.
“We are not rich by what we possess but by what we can do without.”
― Immanuel Kant
Not sure about the name...."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
mayonnaise wrote: »Thanks for this bit of data, I'll pass it on to the ONS so they can amend their reports.
....don't bother, they'll see who sent the communication and rightly disregard it as irrelevant.We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0 -
grizzly1911 wrote: »“We are not rich by what we possess but by what we can do without.”
― Immanuel Kant
Not sure about the name....
Seems, if the Kant boy is anything to go by, I'm richer than I thought. I can do without a Rolls Royce, a 15 room villa in Bali, a private jet, a 12-strong staff of domestic servants, a country mansion in the Cotswolds, and one of those little sheepskin 'warmers' to put both feet into when watching tele.....
I can't afford most of the above, so I am apparently richer than I thought.
Don't know who speaks the biggest rubbish. Economists, journalists, or Philosophers. All I know is that it takes two philosophers to change a light bulb. One to change the lightbulb and one to observe how the lightbulb symbolizes an incandescent beacon of subjectivity in a netherworld of Cosmic Nothingness.0 -
Actually I think the CPI calcs do include substitution effects to a certain extent.
One of the reasons that CPI is better than RPI is that it captures the substitution effect more effectively.
Any measure of inflation or cost of living has to capture the substitution effect otherwise we'd still be including the price of bridles and toga broaches.0 -
One of the reasons that CPI is better than RPI is that it captures the substitution effect more effectively.
My understanding is that is because the CPI is calculated using the geometric mean, whilst RPI uses the arithmetical mean.
As in;
The use of the geometric mean in the CPI at the first stage of aggregation mimics the practice of consumer substitution between different brands/varieties of a similar item in response to relative price changes....Any measure of inflation or cost of living has to capture the substitution effect otherwise we'd still be including the price of bridles and toga broaches.
Even with the RPI weights are updated annualy.0 -
grizzly1911 wrote: »In your experience how does this relate to you in your opinion?
Is it about CPI or is it higher or lower?
CPI is complete rubbish. It is being kept artifically low because of a few things like council tax and petrol not going up over the past year; unfortunately the things which are going up are the ones that matter most to ordinary people, e.g. food and public transport. CPI should be scrapped as a measure of inflation and replaced by RPIX.0 -
I bought some Sirloin Steaks in Waitrose a couple of weeks back at about £ 27 a Kilo, the posh Butcher in the village has some on special offer at £19.99 kilo this week, so for me inflation is "cratering" (in the words of the Schiffter).....also I noticed that Wimbledon Wine Cellar has cases of Chateau La Tour de By 2004 on special so I am quids in this week :j
If you can afford to buy steaks at Waitrose you are already rich to begin with!0
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