Annual increase and CPI

molerat

I believe a very large majority of pension payers use the September rate, it has become pretty much the standard.  But the point about not using the August annual difference is a good one as that was only + 0.2%.

eskbanker

TVAS said:

What is sad as that the Provider could not explain which probably means they employ people who do not read the financial press so they don't know. Why didn't you pursue it? I would have. COMPLAIN.

OP said that the providers "refuse to explain [...] why CPI is calculated on such a low basis and is not tracking reality", which seems fair enough to me - it's not their role to explain how CPI works, so it's perfectly reasonable for them simply to state that the pension increases are aligned with that particular widely-used index, rather than having any obligation to justify that or to discuss the methodology behind CPI....

Andy_L

TVAS said:

RPI and CPI are both rackets. 
CPI does not include Council tax, mortgage interest payments, house depreciation, buildings insurance, ground rent, solar PV feed in tariffs and other house purchase cost such as estate agents' and conveyancing fees.
    
 

Council tax is in CPIH
(imputed) Rent will reflect house price inflation (If that's what you mean by mortgage interest - is interest itself particularly inflationary?) 
Contents insurance is in (although not buildings)
Mortgage arrangement fees are in, as are surveyors & solicitors fees (although not estate agents)
House maintenance & repair costs are in (if that's what you mean by depreciation)

https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceinflationbasketofgoodsandservices

TVAS

Albermarle you are wrong. My Laboratoire Garnier cream was £5.79 2 years ago it is now £9.99. 
Train fairs did not increase by 0.5%.
My council tax bill increased by 4.9%.
My boyfriend has it right the things you need: food, transport accommodation are expensive. The things you want mobile phones, lappys, tellys, broadband are not. I have a £10 phone bill with 8gb unlimited texts unlimited minutes. This is cheaper than when I had a landline in the 1990s.   
Glynny crowd fund the money take the bank of England to court on the grounds that CPI bears no relation to reality. You could be the next Barber v GRE.

Bravepants

TVAS said:

Albermarle you are wrong. My Laboratoire Garnier cream was £5.79 2 years ago it is now £9.99. 
Train fairs did not increase by 0.5%.
My council tax bill increased by 4.9%.
My boyfriend has it right the things you need: food, transport accommodation are expensive. The things you want mobile phones, lappys, tellys, broadband are not. I have a £10 phone bill with 8gb unlimited texts unlimited minutes. This is cheaper than when I had a landline in the 1990s.   
Glynny crowd fund the money take the bank of England to court on the grounds that CPI bears no relation to reality. You could be the next Barber v GRE.

Nivea's £3 in Home Bargains. Big tin too!

Albermarle

My boyfriend has it right the things you need: food, transport accommodation are expensive

He obviously shops in the wrong supermarkets 

https://tradingeconomics.com/united-kingdom/food-inflation