UK Inflation Rate

lisyloo

snowqueen555 wrote: »

Rent inflation is very high, millions of low earners who rent rooms/houses are seeing quite large increases to their living costs.

What makes you say rent inflation is high?

In general it isn’t.
Here’s a link With ons data.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/december2019

If yours is high then you should be shopping around or making efforts to buy (like moving).

My rent has been the same for 6 years, but I’m a good tenant and my landlord can’t be bothered to make any improvements so that’s what normally happens.

gfplux

Is the price of clothing dropping as the High street shops fight to the death.
Obviously online shopping is having an impact but as prices fall so do profits for many retailers.
I understand business rates are considered a problem for the high street but with withdrawal of Government funds from Local Councils I can not see any changes happening.
We should all hope that the High Streets will still be contributing to these inflation numbers in the future, but I doubt it.

snowqueen555

lisyloo wrote: »

What makes you say rent inflation is high?

In general it isn’t.
Here’s a link With ons data.

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/december2019

If yours is high then you should be shopping around or making efforts to buy (like moving).

My rent has been the same for 6 years, but I’m a good tenant and my landlord can’t be bothered to make any improvements so that’s what normally happens.

It's really easy to just find some statistics and post them, but a criticism for your argument is that this looks like a UK wide statistic, the figures will be highly variable. I'm also not sure if the figures include room shares.

I know in my city and nearby, inflation is very high. Cities like Bristol will have a higher demand than other places.

lisyloo

Yes I agree there will be local variations and if it’s a major issue then I would question my careeer/life/financial plans.

I did just check because I was curious and rent IS included in CPI.

Personally CPI can be very different to the quoted figure.

Another reason that home owning wins.

worldtraveller

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2020, increasing from 1.3% in December 2019.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in January 2020, increasing from 1.4% in December 2019.

• The largest contribution to the CPIH 12-month inflation rate in January 2020 came from housing, water, electricity, gas and other fuels (+0.55 percentage points), which increased by 0.19 percentage points since December 2019.

• The largest upward contributions to the change in the CPIH 12-month inflation rate between December 2019 and January 2020 came from gas and electricity prices; fuels and lubricants; clothing; and airfares.

• The Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2020, increasing from 1.3% in December 2019.

ONS

Thrugelmir

worldtraveller said:

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2020, increasing from 1.3% in December 2019.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in January 2020, increasing from 1.4% in December 2019.

• The largest contribution to the CPIH 12-month inflation rate in January 2020 came from housing, water, electricity, gas and other fuels (+0.55 percentage points), which increased by 0.19 percentage points since December 2019.

• The largest upward contributions to the change in the CPIH 12-month inflation rate between December 2019 and January 2020 came from gas and electricity prices; fuels and lubricants; clothing; and airfares.

• The Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2020, increasing from 1.3% in December 2019.

ONS

That's a sizable jump. Makes the return on holding cash and gilts even less attractive.