Real inflation: An SF real world study

[L00b]

And if that carefully constructed and filtered figure is now at 3.7%, what must real world inflation be running at?

Rule of thumb: the UK makes just about nothing, imports just about everything, and pays for it in Sterling. So grab the drop in Sterling value over a period of time, slap it on goods prices in the same time period, and there's a first rough answer

[Tony]

UK = 7th largest manufacturing nation on the planet, but devaluation is a real issue. I saw a statistic recently that a 1997 £1 was worth £0.67 in 2009. I'll see if I can dig out the reference.

[L00b]

UK = 7th largest manufacturing nation on the planet

Not much good if a significant proportion of that output is for export purposes (which it is), rather than indigenous consumption. It's the imports that ramp up inflation.

[grafikhaus74]

It's high time the politicians came clean about inflation and set up an 'essential living cost' index.

 

 

Do you think they care? In the last few weeks, a couple of TV programmes (one was Coast, can't remember t'other one) highlighted recent years. North Sea oil/gas in the 1960's was going to be 'so plentiful, it would be free'. Nucleur fuel in the 50's was going to be so cheap 'it wouldn't be worth metering'.

 

When diesel came widely available for cars, it was much cheaper than petrol. The politicians urged people to buy diesel cars as it was cheaper and 'better for the environment'. When enough people bought diesel cars, they put the price up to match petrol.

 

Finally, a recent James May programme showed hydrogen-powered cars in California. A great option. Hydrogen is everywhere, non-polluting and surely the future!

 

May filled this car up at one of the fast-expanding 'gas stations' which offer hydrogen that are appearing in the US. The price? Exactly the same as petrol.

 

See a pattern emerging? Politicians are the scourge of society and really don't give a toss about the rest of us.

 

And Brown was the worst of an extremely bad bunch.