What Is It With The 20% Increases On Food?

[Dromedary]

19 minutes ago, El Cid said:

Most households pay council tax, which is not included in the CPI measure of inflation.

Many also get a reduced rate as they are means tested, many only pay a single occupiers rate and some like me pay nothing. 

 

Now come up with a way of negotiating that.

 

Quote

Many dont own a vehicle, but those figures are still included in the CPI measure of inflation.

 

A quote from the RAC,
 

"Over 77% of households in Great Britain have a car and because car-owning households tend to have more than one person (most non- car owning households are single person households) the number of people with access to a car in the house is 81% of the total population.

 

So it's basically a few that dont own one.

 

https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerpriceinflationbasketofgoodsandservices/2021#:~:text=Movements in consumer price inflation,or outlet that supplies them.

Edited March 5, 2022 by Dromedary

[El Cid]

11 minutes ago, Dromedary said:

Many also get a reduced rate as they are means tested, many only pay a single occupiers rate and some like me pay nothing. 

 

Now come up with a way of negotiating that.

So they calculate inflation and include electric and hybrid cars, but not council tax!

 

I have put my point accross and you are sticking to what you believe is true. I will leave it there and agree to disagree.

CPI inflation is a poor measure of inflation.

[El Cid]

8 hours ago, Dromedary said:

So why not use the one that does include housing costs and one that you already know about and that is CPIH which is only at 4.9% then after all you are a homeowner. Is it because it is even lower than you want to believe it is?

This year's RPI rate was published on 16th February 2022 and was 7.8%

 

Each year, your Airtime Plan will be increased by the RPI rate of inflation announced in February plus 3.9%. If RPI is negative, we’ll only apply the 3.9%. You’ll see this change on your April 2022 bill onwards.

RPI is a widely recognised measure of the general level of inflation. Several industries use it as a guide on whether to adjust prices and by how much.

 

https://www.o2.co.uk/prices

[fools]

1 hour ago, El Cid said:

The ONS are looking into doing an inflation figure for different income bands. If food is increasing by 20% yet tech is only increasing by 5%; then the poor will have a different level of inflation to the rich.

The CPI measure of inflation is predicted to reach 8% this year. With council tax and house prices maybe increasing at less than real inflation, CPI and RPI could come closer together.

On average RPI is only 0.9% higher than CPI

Everything has been computerised for half a century, every supermarket, every company knows precisely how much inflation is and what weighting to give, this is all a bit late to the game. You don't need a panel of suits to decide if the basket should include obscure home-killed lamb shoulder and the like when everything is tracked. Want to know how much Pringles have gone up, or what percentage of the public buy them, well every supermarket can tell you, no mystery shoppers needed.

 

Doesn't matter what figure they come up with, if the index linking of pensions and such doesn't keep up with reality, people who depend on it will get scammed. Savers have been getting fleeced for a long time. The currency has been devalued by profligate, inept and neglectful government, that inevitably leads to high inflation.

 

My largest bill has gone up 125% in 3 months (that's before the war), however you dress that up, it's not single figure inflation....Reflect that ONS.

 

 

 

 

 

Edited March 5, 2022 by fools

[Dromedary]

16 hours ago, El Cid said:

This year's RPI rate was published on 16th February 2022 and was 7.8%

 

Each year, your Airtime Plan will be increased by the RPI rate of inflation announced in February plus 3.9%. If RPI is negative, we’ll only apply the 3.9%. You’ll see this change on your April 2022 bill onwards.

RPI is a widely recognised measure of the general level of inflation. Several industries use it as a guide on whether to adjust prices and by how much.

 

https://www.o2.co.uk/prices

It doesn't take much to understand why O2 and other companies are using the RPI inflation rate to calculate rises though does it... Its because its the highest inflation figure available to use so it then means more profit is generated. CPI = 5.5% vs RPI = 7.8%.

 

17 hours ago, El Cid said:

I have put my point accross and you are sticking to what you believe is true. I will leave it there and agree to disagree.

CPI inflation is a poor measure of inflation.

I will also agree to disagree and will also leave it at that.

 

So thanks as it has been interesting.

Edited March 6, 2022 by Dromedary

[iansheff]

 Everything we buy is going up, wait for a jump in bread prices I would imagine they will be jumping up quite a bit.

Edited March 6, 2022 by iansheff

[Anna B]

What's really got my goat is the suspension of the triple lock on pensions. Pensions should be going up by inflation, but that rule has been overturned now it's not in the government's interest to do so. 

 

We already have one of the lowest pensions in Europe.

[iansheff]

26 minutes ago, Anna B said:

What's really got my goat is the suspension of the triple lock on pensions. Pensions should be going up by inflation, but that rule has been overturned now it's not in the government's interest to do so. 

 

We already have one of the lowest pensions in Europe.

The only time they have any interest in pensioners is when they want their votes, lets see what they promise  for the next election. Not that it will make any difference, they will probably renege on what ever they promise

[fools]

Pensions are still going up with inflation, just not wage inflation for one year, (with valid reason). They could have averaged out the raise in earnings over 2 years to avoid this bad publicity.

 

The more important point is the does the official rate of inflation reflect the massive increases in fuel (and other costs) we are about to endure. Collecting all this data should have a real life use.

 

Also, continually kicking the retirement age can down the road is a horrible policy. People should be able to retire at 50-60, with a reduced amount if they so choose.

Edited March 6, 2022 by fools

[El Cid]

2 hours ago, fools said:

Pensions are still going up with inflation, just not wage inflation for one year, (with valid reason). They could have averaged out the raise in earnings over 2 years to avoid this bad publicity.

When the Government announced the 3.1% CPI inflation increase to the pension, that was in September 2021.

But the rate is now 5.5% CPI or 7.8% RPI and the increase looks poor, it doesnt come into affect untill April.

When the next pension increase is announced in September 2022 inflation is likely to be 7% and declining, so when it comes into effect next year, it may feel higher.

That is assuming there is still no triple lock and they agree to increase pensions inline with inflation, its likely that earnings will be increasing by less than 7%