The cost of living.....

LillyJ

PasturesNew wrote: »

The cost of living going up will hopefully stop all these fat bugg4hs that get in my way in the shops when they're stocking up on multi-buy packs of crisps and gallons of fizzy pop for their fat kids.

This crash might be the secret Govt solution to obesity.

:rotfl: :rotfl: :rotfl: :rotfl:

I stood behind a lady today who was buying crisps, chocolate, chocolate milk, frozen pizza, coke, coco pops and.......a lettuce.

phil_b_2

cheesy beans on toast with an egg on top = food of kings.

I'm the sort that could actually happily live eating the same thing every day! For some reason I dont really take pleasure from eating dinner/tea etc, its just a means of fuelling the body. That said, I did a low card shop the other day, getting a load of white fish, chickenm and beef and easily exceeded a usual 2-3 months worth of food spending .

martinman3

If anyone is actually interested the RPI inflation figures have been telling everyone the bad news for a few months but it has not actually been reported because it is the current annual percentage rate of 4.2% which is quoted.

I did some calculations using the RPI values for the last 1, 3, 6 months, to find out what NS&I certs are currently returning, and got a surprise. I found that the equivalent annual rate of inflation is 10.75%, 8% and 4.88% for those periods.

http://forums.moneysavingexpert.com/showpost.html?p=11011081&postcount=10

This means that for the last 3 months the equivalent annual rate of inflation is 8% and any savings earning less than 8% AER after tax during that period have been eroded.

The RPI may not rise as strongly for the rest of the year but the quoted annual rate in 6 months will still be a shock to many.

PasturesNew

martinman3 wrote: »

If anyone is actually interested the RPI inflation figures have been telling everyone the bad news for a few months but it has not actually been reported because it is the current annual percentage rate of 4.2% which is quoted.

I did some calculations using the RPI values for the last 1, 3, 6 months, to find out what NS&I certs are currently returning, and got a surprise. I found that the equivalent annual rate of inflation is 10.75%, 8% and 4.88% for those periods.

http://forums.moneysavingexpert.com/showpost.html?p=11011081&postcount=10

This means that for the last 3 months the equivalent annual rate of inflation is 8% and any savings earning less than 8% AER after tax during that period have been eroded.

The RPI may not rise as strongly for the rest of the year but the quoted annual rate in 6 months will still be a shock to many.

Good work.

Re savings being eroded. If you're saving for a house then with the price of those falling it's irrelevant.

Outpacing savings is only important when the thing you are trying to buy is inflating more than the savings rate.

So for those trying to put a deposit down on a loaf of bread right now, they stand no chance. They need to compromise and immediately buy a pack of biscuits instead before even they're out of their price range.

LillyJ

PasturesNew wrote: »

So for those trying to put a deposit down on a loaf of bread right now, they stand no chance. They need to compromise and immediately buy a pack of biscuits instead before even they're out of their price range.

:rotfl: :rotfl: :rotfl:

PN you're on fire today!

m00m00

there's always going to be people who have to show off though

how else do you explain jaffa cake sales

martinman3

PasturesNew wrote: »

Re savings being eroded. If you're saving for a house then with the price of those falling it's irrelevant.

You are confusing the issue slightly.
1. What you later use your savings for is irrelevant, if savings rate less than RPI inflation rate it is eroded while you are saving for it if the item is included in the RPI calculation.
2. If you use your savings to purchase an item and the item drops in price after you bought it by more than (savings rate-RPI inflation rate) you are worse off than if you had left your savings where they were and bought it later.
3. If you are saving only for a house deposit you need a savings rate as high as possible and you must buy when house prices hit bottom or you will lose out anyway.

PasturesNew wrote: »

Outpacing savings is only important when the thing you are trying to buy is inflating more than the savings rate.

Savings are not only used to buy something in the future which cannot be bought now. They are used to pay unexpected bills and provide a buffer if money becomes tight.

p.s. re: this thread, I feel like someone still working at their desk during the Christmas Party.:)

nickyhutch

PasturesNew wrote: »

The cost of living going up will hopefully stop all these fat bugg4hs that get in my way in the shops when they're stocking up on multi-buy packs of crisps and gallons of fizzy pop for their fat kids.

This crash might be the secret Govt solution to obesity.

If you're behind me and I'm buying lemonade, it's not for my (not fat) kid, it's for my vodka. And I'm not a fat bugg4h either.

LillyJ

m00m00 wrote: »

there's always going to be people who have to show off though

how else do you explain jaffa cake sales

And wagon wheels.

cookie_monster

Damn you guys, talking about beans on toast....will have to have some when I get home now.