Why is there no inflation?

masonic

thickasabrick said:

Don’t suppose there is a UK equivalent of John Williams'  shadowstats to compare the “official” inflation rate against alternatives .
To quote 
“methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living. “

You can track your own rate of inflation if you track your spending. I have about 10 years of data with which to calculate my personal rate of inflation, which comes out quite close to CPI for me personally.

barnstar2077

masonic said:

thickasabrick said:

Don’t suppose there is a UK equivalent of John Williams'  shadowstats to compare the “official” inflation rate against alternatives .
To quote 
“methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living. “

You can track your own rate of inflation if you track your spending. I have about 10 years of data with which to calculate my personal rate of inflation, which comes out quite close to CPI for me personally.

I second this idea.  Anyone who wants to know what kind of money they will need in the future to live comfortably should start making a note of their bills and main expenses now.  It is because I have numbers going back six or seven years that I am pretty confident that I can retire earlier than most would be comfortable with considering my projected available funds.   Also, just taking a look every six months helps you to see where you are, and are not, getting value for money from your expenses.  For instance, meeting a friend in a nice cafe for lunch, or seeing that same friend in a restaurant for dinner at three to four times the price.  I don't advocate keeping receipts etc, just listing your bills and major expenses and then adding a new column every year or so with their current price.  If it isn't easy and painless you won't do it. Or at least I won't :  ) 

Bravepants

I see a good few people are still buying stuff online, but from Europe and then they get a "surprise" import duty and UK VAT charge!

Albermarle

Bravepants said:

I see a good few people are still buying stuff online, but from Europe and then they get a "surprise" import duty and UK VAT charge!

There is only import duty if the product largely originates outside the UK/EU  , but all goods are being charged VAT and admin costs.
The impact is felt much more on small value gifts and purchases. To a large business importer the admin cost is very small compared to the value of the goods ( although a hassle) and the VAT can be reconciled in their normal VAT accounting.

pp556677

Inflation low is good

Type_45

Having read the thread, it seems unanimous that lockdowns cannot cause inflation. 

Does anyone disagree and think lockdowns CAN cause inflation? 

A YouTube video I recently watched seemed to think Lockdown can cause inflation.

masonic

Type_45 said:

Having read the thread, it seems unanimous that lockdowns cannot cause inflation. 

Does anyone disagree and think lockdowns CAN cause inflation? 

A YouTube video I recently watched seemed to think Lockdown can cause inflation.

Lockdowns can cause inflation in some goods and services because they change consumer spending and also may reduce supply of certain things. Lockdowns can also cause deflation in other things due to the reduction in demand. However, there are many other factors that affect prices, and it is the combination of all of those factors that ultimately decides the price.