Inflation falls to 1.9%

CLAPTON

Graham_Devon wrote: »

CPI fell.

RPI though, rose, from 2.7% to 2.8%.

no

CPI fell

and RPI fell
these tell us the cost of living

the headline figure 'inflation rate' tells us the change from 12 month ago and not the change from a month ago


it was cheaper to buy your basket of goods and services in January 2014 than it was in December 2013 on both measures


funny that people are happy to discuss the increase in house prices month on month but general prices never.

Bantex_2

CLAPTON wrote: »

no

CPI fell

and RPI fell
these tell us the cost of living

the headline figure 'inflation rate' tells us the change from 12 month ago and not the change from a month ago


it was cheaper to buy your basket of goods and services in January 2014 than it was in December 2013 on both measures


funny that people are happy to discuss the increase in house prices month on month but general prices never.

Sorry, but unless CPI or RPI fell to a minus number then the basket of goods must have cost more in Jan 2014 than Dec 2013.

They do not tell us the cost of living, but the rate of change in the cost of living.

Unless I am missing something.

leveller2911

AndyGuil wrote: »

I costed up an entire refurbishment about 8 months ago.

I have just started carrying this out and all of the goods I had selected are now cheaper.

You have been fortunate then.

In my Joinery business, timber prices have risen with softwood prices up by around 6% and Hardwoods about 12%. The price of glass has increased as has the Governments Energy surcharge on glass.

moneyinmypocket

More good news for the mighty home owner

CLAPTON

Bantex wrote: »

Sorry, but unless CPI or RPI fell to a minus number then the basket of goods must have cost more in Jan 2014 than Dec 2013.

They do not tell us the cost of living, but the rate of change in the cost of living.

Unless I am missing something.

yes you are missing something as you don't know that

a. CPI and RPI are indexes.

b. the rate of CPI inflation e.g 1.9% for Jan 2014 is

= (CPI at Jan 2014 - CPI at Jan 2013)/ (CPI at Jan 2013) %

where CPI is the underlying INDEX


c. now a fall in CPI (not a negative number) simply shows a reduction in prices from the previous month
it happens in January and July most years


d. a fall in the RATE of inflation tells you how things changed compared to a year ago : one could say it's seasonally adjusted



e. so a negative rate of inflation may or may not mean things are getting cheaper NOW although it does say things are cheaper than a year ago.

f. a fall in the INDEX CPI means that things are cheaper than last month

danothy

Bantex wrote: »

Sorry, but unless CPI or RPI fell to a minus number then the basket of goods must have cost more in Jan 2014 than Dec 2013.

They do not tell us the cost of living, but the rate of change in the cost of living.

Unless I am missing something.

Both the CPI and RPI indices are lower for Jan 2014 than Dec 2013 (127.5 -> 126.7 and 253.4 -> 252.6 respectively). The percentage is the change over the last year.

aardvaak

MFW_ASAP wrote: »

http://www.bbc.co.uk/news/business-26239631

"The rate fell below the Bank of England's 2% target for the first time in more than four years.

The fall is likely to underline the Bank of England's message that there
is no rush to raise interest rates."

Another example of government propaganda to the run up to a general election

CLAPTON

aardvaak wrote: »

Another example of government propaganda to the run up to a general election

give us the real figures

aardvaak

CLAPTON wrote: »

give us the real figures

Why?

It's Another example of government propaganda to the run up to a general election.

If you can not see that you must be taken in too.

lvader

aardvaak wrote: »

Why?

It's Another example of government propaganda to the run up to a general election.

If you can not see that you must be taken in too.

The propaganda seems to be affecting companies as well because they don't seem to be putting prices up. :rotfl: