Cpi August Down To 1.8%

ds1980

Nick_C wrote: »

Students and children don't generally have independent income, and are not affected by RPI/CPI. Am simply making the point that CPI is not a fair measure of inflation for most people, as most people do have housing costs, even if its only Council Tax! Didn't expect a lecture on Local Government Taxation for expressing an opinion!

I was earning £10k a year when i was a student majority now all have to work to pay the students debts that they have so don't talk rubbish. Most children don't work your right but they are not affected by cpi???? how ridiculous do they have clothes do they use up the heating do they drink and feed or do they just exist?

why do people get all arsey when someone replies. A reply does not constitute a lecture it constitutes an opinion which unfortunately isn't the same as yours. just for your information that is the purpose of a forum. I think it dates back quite a wjhile ago i imagine in roman times. Back then if you disagreeded you were put up against tigers and massive people with swords fortunately for you that doesn't happen anymore but if it did me thinks you'd be getting the thumbs down treatment.

Flynn_2

Nick_C wrote: »

Students and children don't generally have independent income, and are not affected by RPI/CPI. Am simply making the point that CPI is not a fair measure of inflation for most people, as most people do have housing costs, even if its only Council Tax! Didn't expect a lecture on Local Government Taxation for expressing an opinion!

No one was lecturing you but making the point that including Council Tax would be relevent to some people but not to others.

My brother-in-law has three grown up children in his house, one a student, two in professional jobs, five adults in all including his wife who also works. The children and wife don't pay Council Tax and he'd pay exactly the same if they left home. Next door to me two pensioners pay £2500 a year.

To say that including the tax in any index would then make it "fair" is a simplification. Fair for whom?

Nick_C

Beneath all the venom and sarcasm, I presume you are expressing the view that the CPI is a fair measure of inflation? Not quite sure why you hold that view, but you are entitled to your opinion!

Flynn_2

Nick_C wrote: »

Beneath all the venom and sarcasm, I presume you are expressing the view that the CPI is a fair measure of inflation? Not quite sure why you hold that view, but you are entitled to your opinion!

No I'm not. Read again.

I'm saying that a measure that is accurate for the situation of one person may not be accurate for another. Our outgoings and costs are all different and no single measure can be "fair" to all.

dt99idr

What ever the merits (or not) of CPI, it simply wouldn't be possible to use RPI because it includes morgage interest payments.

The Bank would put up interest rates to curb inflation, Interest payments would go up, and therefore RPI.
Hmm, RPI is going up, looks like we need to raise interest rates again.... and on into infinity.

RPI might be a better measure of inflation, which is why it's still quoted, but the Bank simply can't use it as their measure of inflation without getting into spiraling interest rates as shown above.

Ian

Nick_C

I see your point about CPI being an appropriate target for the BOE (although RPI was used, surely, before CPI was invented?), problem is its also used as a measure of inflation when negotiating pay awards, and as a means for trying to convince people who pay mortgages and/or Council Tax that inflation is lower than it would otherwise be.

Andy_L

ISTR that somebody around here has/had a sig of a quote from the BoE saying that rpi & cpi are technical measurments & do not really represent what most people would regard as inflation

purch

Cpi August Down To 1.8%

......and it's just coming up to the time of year HM Gov decides how much to index link increases in Pensions and Benefits.......strange that