Real Inflation 9.5 %

michaels

!!!!!!? wrote: »

Firstly, I don't find it funny when people are threatened with losing their homes.

Secondly, if you make a statement like " So overall I wouldn't say inflation is currently a problem." then expect to be ridiculed.

You seem somehow not to have experienced sizeable price rises in food, electricity, gas/heating oil and petrol/diesel. However, I can assure you that the rest of the country most certainly has.

.

Apologies, you have obviously been falsely maligned elsewhere.

I also take your point about my final sentence, I wrote it as applying to me personally as a counterpoint to others experience with different spending patterns but reading it back I can see how it could also be read as a general 'there is no inflation problem' which is patently untrue and I guess worthy of mirth.

On your substantive points, gas/eletric are up over 3 years but over 12 months are if anyhting slightly lower. Food is up 5-10% over 12 months but this only adds 20-40 quid to my monthly bills whereas each 25 basis point cut in interest rates brings my mortgage down by 40 quid a month. Petrol is more but I chose to live in an expensive area as it means I can walk to work sp just by slightly reducing the number of trips I make I can offest the rise in petrol prices. My point is though that all of these are personal experiences, others will be much more affected and that not everyone is currently suffering a personal inflation rate above the cpi. About 18 months ago it was the opposite and I felt that inflation was a big personal problem, swings and roundabouts I guess.

John_Pierpoint

Looks like the tanker drivers will settle for 14% over 2 years.
They have got the muscle and Shell can afford the increased ton/mile rates from their suppliers.
It is a potentially dangerous job and you cannot expect a family man to manage on less than 40K.

Stop winging you pensioners.

neverdespairgirl

Sir_Humphrey wrote: »

Personally, I think this appropraite for certain goods such as electronics, but less so for basic food (reminds me of Marie Antoinette's quote "let them eat cake"). As our Irish cousins know, it is not always possible to substitute potatoes.

AIUI, demand for spuds actually rose in the Famine. That was because the spuds were the cheapest thing people ate, so as the price went up, they had to cut more expensive foods out.

payingfornowt

obsessed_saver wrote: »

That's fine.

But I beg the government to use the money they collect in fuel duty to put in the infrastructure (and subsidise) alternative fuels. Example: hydrogen filling stations for cars like the first production hydrogen fuel cell car from Honda:

http://news.bbc.co.uk/1/hi/business/7456141.stm

Well, they are not doing anything of the sort for "green" technologies are they? They are just taking the money and paying for their second kitchens.

Technologies like this are not viable for private companies, and the government has to take the long view and invest in the infrastructure and offer subsidies.

Bio-fuels and non fossil fuel cars are a long way off, we need something in the interim.

We need some serious investment and regulation into our public transport. The availability and quality need to go up and the prices need to drop. In short we need more for less, it will not be easy but as an economy of scale it will eventually become profitable for the operators in the meantime we need to see massive government subsidies.

Nationalisation would be a start.

WTF?_2

John_Pierpoint wrote: »

Looks like the tanker drivers will settle for 14% over 2 years.
They have got the muscle and Shell can afford the increased ton/mile rates from their suppliers.
It is a potentially dangerous job and you cannot expect a family man to manage on less than 40K.

Stop winging you pensioners.

Bottom line:
Those who have the muscle to do so will win pay rises.
Those who don't are shafted.

'twas ever thus.

fc123

setmefree2 wrote: »

I don't think Brits fully appreciate the link between the cheap t shirts and the expensive petrol (but maybe they are getting there). The cheap clothes etc are made in India & China where oil is subsidised and therefore oil is heavily in demand. The expensive food (in part) is due to the heavy demand for oil in the countries making the cheap T shirts (making the production of food expensive because of fertilizer & pesticide costs and making the Americans produce ethanol from corn and wheat). When the Chinese & Indians stop giving away cheap oil, what will happen then? Will oil prices & food prices fall? How much damage will have been done in the meantime to Western economies?

So anyway, you are not really getting a cheap T shirt you are paying for it through the pumps, through food and through your gas and electricity.[/quote]



Being very enconsed deep in the clothing business (retailer and producer for 20 yrs) I am aware of all the costs involved in clothing production...don't want to go on and on though as post turns into a ranting essay BUT the price of The Cat Jelly is the think that gets me. I am so being ripped off....plus they put addictive stuff in it. The cats ruin all MSE best shopping practice guidlines.

fc123

John_Pierpoint wrote: »

Your customers pay cash on the nail ?
You have a unique selling point, that means demand for your services increase in a recession? Your customers have no other choice?

Tell me what it is - I need to know.

Qualified bailiff ?
(I can think of a few more but I don't want to upset you or other readers of a gentle persuasion.)

??? Moi Bailiff??? Oh, not me.I meant I have to keep on the ball to keep it all together. If I just sit there and say 'When things pick up...' I'm going to be shafted. Neighbours are doing just that....not me.
I'm now Mrs Research and think ahead.....but much of it is instinct too plus reading what is going on within ones own sector.

Actaullerely.........I have to decide when to close down a significant part of our business....make myself redundant STS. Mmmmmmm dealing with it quite well (though I say so myself ) but it all links in to a longer LifePlan I'm desperateley trying to implement once DD hits 18.
A Whole Lifestyle Change.....for The Recession.

fc123

Sir_Humphrey wrote: »

Maybe he is an undertaker. Easy to "bump" up some more customers.

Not a He...A She.....Clothing designer, retailer, all round creative person (who also cleaned up in the last recession).

fc123

PasturesNew wrote: »

Why did I thank this.
I disagree.
But can't be bothered to type out why.

Take it as a thanks for posting something.

Thta's The Asda Effect....the lights, the music, the Asda Ambience....puts you in a trance state whilst shopping...takes a while to wear off.
For good veg try a box scheme......Riverford are good and you get all this interesting, muddy stuff that needs recipes to make it edible. I got summer turnips ??? this week.

mr.broderick

Sir_Humphrey wrote: »

Whilst I agree that the CPI is a bit of a joke (it was never designed to be a cost of living index anyway, but simply a monetary policy tool), I do not see inflation as high as 9.5%. Not everyone has a mortgage and not everyone uses a car or flies several times a year. Higher food costs hit the poor hardest as they use a greater proportion of income on food.

The guy in the article who reckons that fuel duty cuts would be a good idea does not know much about economics either. Cutting fuel duty would increase demand for petrol, pushing up it's market value, negating the effect of the cut. In effect, it would be a tax break for oil companies (fuel has inelastic supply).

Paul Krugman explains this better here:

http://krugman.blogs.nytimes.com/2008/04/29/gas-tax-follies/

Interesting point that and i like it, however if fuel halved overnight i wouldn't use any more personally.