poppet2 Posted October 18, 2012 Author Share Posted October 18, 2012 So are you all saying it is the pace that inflation goes up and not the rate that is calculated? Link to comment Share on other sites More sharing options...
Cyclone Posted October 18, 2012 Share Posted October 18, 2012 True inflation is about 6%. High fuel prices ensure that inflation remains high. The value of peoples savings is decreasing in real terms at about 4% per year. It is a double whammy to hard working people who have saved. This government is really ripping them off. The government doesn't set the level of inflation, they don't even directly try to control (having given responsibility to the BoE to do that). Women who were born after 1954 also now cannot collect a pension until they are 66. This government are thus cheating them out of another £30,000 or so with this alone. Plus free prescriptions, bus passes and fuel allowance have been tied to this age. Women born in this period are being hammered into the ground financially by this bunch of unelected multimillionaires (inherited money). Inline with men. Link to comment Share on other sites More sharing options...
Cyclone Posted October 18, 2012 Share Posted October 18, 2012 So are you all saying it is the pace that inflation goes up and not the rate that is calculated? No, inflation is the measure of the rate of change of prices. If inflation falls to 2.2%, then things are still increasing in price by 2.2%/annum on average. If inflation fell to 0.0% then the rate of change would be zero and prices would be static. Link to comment Share on other sites More sharing options...
maxmaximus Posted October 18, 2012 Share Posted October 18, 2012 Inflation is obviously the average that some items are increasing buy, but not all items are on the list and whilst some are deflating others are inflating by well above the average rate of inflation, food is a good example of the items that as over the years gone up by more than inflation. I think the government decide what is in the list that is used to calculate inflation, so do have some control over it. Inflation is personal to everyone, for instance a young person that spends most of their money on the latest gadget will likely suffer below average inflation, whilst a pensioner that spends most of their money on food and fuel with likely suffer above average inflation, so they could see their money buying 10% less than it did last year whilst a young person might get more than they could get last year. Link to comment Share on other sites More sharing options...
poppet2 Posted October 18, 2012 Author Share Posted October 18, 2012 Inflation is obviously the average that some items are increasing buy, but not all items are on the list and whilst some are deflating others are inflating by well above the average rate of inflation, food is a good example of the items that as over the years gone up by more than inflation. I think the government decide what is in the list that is used to calculate inflation, so do have some control over it. Inflation is personal to everyone, for instance a young person that spends most of their money on the latest gadget will likely suffer below average inflation, whilst a pensioner that spends most of their money on food and fuel with likely suffer above average inflation, so they could see their money buying 10% less than it did last year whilst a young person might get more than they could get last year. Very clear explanation. Since most people have to buy food, petrol, gas, electricity and pay transport fares, these items should be included. Link to comment Share on other sites More sharing options...
Cyclone Posted October 18, 2012 Share Posted October 18, 2012 Very clear explanation. Since most people have to buy food, petrol, gas, electricity and pay transport fares, these items should be included. And they are. It is of course possible to look at the inflation in more detail, you could look at fuel inflation, food inflation, clothing inflation, housing inflation, and so on. There are even analysis sometimes by spender age, so it might say the average 20 - 25 year old will suffer this % whilst a 40 - 45 year old (the groups have different spending habits) will suffer this other %. Link to comment Share on other sites More sharing options...
Vague_Boy Posted October 18, 2012 Share Posted October 18, 2012 More government lies. Nothing new there then. That's the CPI measure. CPI excludes mortgage interest payments, household insurance, council tax and (sometimes) food and energy. The Bank of England's target measure of inflation was changed from RPIX (RPI less mortgage costs) to CPI in 2003. Although the CPI measure includes volatile items like food and energy, the Bank of England is happy to follow the Fed's lead and disregard rising energy and commodity prices if it decides that these are temporary. LINK So if crops like wheat are up of late World on track for record food prices 'within a year' due to US drought The BoE can feel to disregard that if they want. You of course, still have to pay the higher prices in the shops, blip or no blip. And isn't September the month when people's benefit and pension raises are calculated? How convenient that inflation should fall at this time. The timing of September's inflation low point is bad news for basic state pensioners and those on benefits, as the Government uses September's CPI figure to calculate their payment increases the following April. State pensions increase by CPI inflation, wage increases or 2.5%, whichever is higher. This means that the current basic state pension of £107.45 a week is likely to rise by a minimum of 2.5% or just under £2.70 a week next year. LINK Phew, that was a bit of luck for the government wasn't it? Link to comment Share on other sites More sharing options...
AWOL Posted October 18, 2012 Share Posted October 18, 2012 The government doesn't set the level of inflation, they don't even directly try to control (having given responsibility to the BoE to do that). Inline with men. That does not make the fact that the filth are thieving £30 something thousand off us! If it had been France the retirement age would have decreased to 60 for men, but this rip off lot go the other way. What an excellent way to increase unemployment for youngsters! Link to comment Share on other sites More sharing options...
WeX Posted October 18, 2012 Share Posted October 18, 2012 That does not make the fact that the filth are thieving £30 something thousand off us! If it had been France the retirement age would have decreased to 60 for men, but this rip off lot go the other way. What an excellent way to increase unemployment for youngsters! No one is thieving anything. If the roles were reversed you would be complaining about inequality. France is hardly a good comparison, their economy is tanking. Link to comment Share on other sites More sharing options...
AWOL Posted October 18, 2012 Share Posted October 18, 2012 France is hardly a good comparison, their economy is tanking. I really do not give a damn about the economy, I just want the stolen money back and for me to retire at 60 too. Why shouldn't we give the youngsters a chance instead of hogging jobs into our senile years? Link to comment Share on other sites More sharing options...
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