Discuss your personal inflation rate

Former_MSE_Lawrence

The Office of National Statistics' Personal Inflation Calculator purports to give you an accurate reading of your personal inflation rate, after you enter all the ins and outs of your spending. This thread is for discussing the findings.

Please click 'post reply' to discuss below.

[threadbanner]box[/threadbanner]

bears1404

Aaaah - that explain a lot - according to this, 'my' inflation rate has been closer to 8% over the last 18 months - great when my pay increases have been set for last 3 years at 2.3%

I don't understand why the govt is allowed to get away with using a measure of inflation that doesn't take into account some of the biggest everyday expenses.

I note 'my' inflation rate is now dipping (over last few months) to a 'mere' 4.9% - any idea why this might be?

tin_kitten

I noticed my inflation rate was up at around 14% 6-8 months ago, but it's come back down to 4-5% now.

F_T_Buyer

F_T_Buyer

Ok, being serious now...

The inflation measure has been adapted many times over the decades. Years and years ago, the rate of inflation was the increase of money in the economy - this is the real definition of inflation, as more and more money chasing a fixed supply of good causes prices to rise.

This was later turned on it's head, and redefined as a rise in prices. Years later, this was changed to include retail prices... the current government then changed it to consumer prices.

Why? Because by changing the goods in the basket to those you don't need results in a lower overall figure, as these goods are not forced upwards like goods you need to buy.

Note how in recent times our government talks more of 'core inflation' and wage inflation?

Why? Because even the flawed CPI (Consumer Prices Index) is now showing inflation is out of control. So instead of talking about the real issues, they decide to exclude products rising in price (energy and food) and try to depress your income by asking you not get a pay to pay for their mistakes.

[Deleted User]

My rate is 6.8%, 4.4% increase over the past 1 year. I'm quite surprised at how low this figure is when you see these 20, 30 and 40 percentages on the news... I suppose it's all weighted etc.

Crazy_Diamond

The inflation rates used to produce the figures in the calculator are outlined here http://www.statistics.gov.uk/PIC/downloads/PriceSubIndices.pdf

My annual rate was around 11% from last March to November but has since dropped back to about 5%. I think this was largely due to Mortgage Interest Payment inflation as this is around 35% of my expenditure and annual inflation for these was running at a massive 26% last June/July. I assume from this it does not take into account fixed rate mortgages.

tonyperks

I asked the ONS for details of the actual prices they use for their inflation calculations ... there are 650 items in the "basket of goods", and I wanted to know how much is that loaf of bread and flat screen TV ... the reply I received was less than helpfull ...

"The data you have found is the lowest level at which we publish. Individual
item weights are updated each year and used within the CPI calculations,
but are not published - this is mainly for reasons of confidentiality and
disclosure"

Can MSE track down these numbers, please ?

F_T_Buyer

tonyperks wrote: »

I asked the ONS for details of the actual prices they use for their inflation calculations ... there are 650 items in the "basket of goods", and I wanted to know how much is that loaf of bread and flat screen TV ... the reply I received was less than helpfull ...

"The data you have found is the lowest level at which we publish. Individual
item weights are updated each year and used within the CPI calculations,
but are not published - this is mainly for reasons of confidentiality and
disclosure"

Can MSE track down these numbers, please ?

You won't get anywhere, but worth a shot.

The quality of different food products in any one category varies enormously, and as such there is great scope for manipulation.

Other manipulations include such items as a small loaf of bread taken out, to orange juice being replaced by champagne (just as the government frozen duty on champagne) to child car seats being removed (just before it became law to use them for children under a certain height).

tonyhamm

This government is spinning inflation as only coming from oil prices and energy prices 'which we can't control'.

Trouble is lthough incomes for many have not risen, there are a lot more people, millions, doing highly paid non jobs, inventing new taxes etc.. which lets face it places a lot of strain on the 3 or 4 people who still actually make real things in this country like food.

A good cartoon of the UK would be 25 form fillers, community engagement officers, racial awareness offiicers etc.. all being paid with money for food that does not exist, (fiscal deficit, government borrowing) all monitoring the progress, racial awareness, community engagement, tax compliance etc.. of the one worker actually producing food, and wondering why food prices are going up.

By fiddling the CPI/RPI they have managed to fiddle domestic caused inflation, from thier massive expansion og government, but you can see the effects of domestic inflation in the huge UK trade deficit.

However, a leading cause of the trade deficit and rising costs have been Energy prices in the UK - a leading energy producer - which have been higher than Europes for years. There has been nothing from this government on this situation which has existed since at least 2003! Any government with balls would be demanding the difference in lost GDP terms (billions upon billions) from the EU corrupt club which rigs Europes energy market, against the UK in the favour of a few nation states and energy suppliers.

How have they been able to get away with this for YEARS?? - our manufacturing base disappearing due to it!

goodquestion

Apparently mine works out at pretty much the national rate, but a question re Student Loans, the 'interest' of these is set against the CPI, which would mean that it would 4.4% of the total amount, is that correct? Then surely that should be taken into account on my inflation calculator when my pay rise has been below the rate of inflation?