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Arnak | How is the cost of living calculated in the UK? |
Hi,
I am confused, ok that's not unusual.8-))
I just heard on the news that the cost of gas has risen by 85% over the last 3 years.
So given that electricity prices, petrol and diesel, council tax, car tax etc have all risen dramatically over the same period how come the inflation rate is only 2.5%?
Also why is the RPI stated to be at 4% and why don't the government use the 4% figure?
How is the Cost of Living calculated, what is actually included in these figures to obtain such a low figure as 2.5%?
Arnak |
 |
 
Veritas
 |
The Government measure is the CPI, and it is totally unrepresentative because it leaves out most of the relevant key items. It was chosen by Brown because he wanted to present the BOE with a low inflation measure to enable them to keep interest rates low. This created a housing boom and excessive borrowing. This made the government look good, but we are all about to start paying the price, particularly if you are on a fixed income or are a saver. It is currently 2.00 % not 2.7%. Not sure where you got that from.
The more representative RPI is said to be currently 4.00% down from 4.3% recently. Even this rate excludes some key items, but, nontheless, is still too high for Brown. Moreover, as both rates have come down recently, and, given that we all know that inflation is rising, it looks as though they are fiddling even those measures. |
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MikeD2
|
Have you ever seen what you get in a field of bulls?
That's what politicians are made of, and I don't believe the inflation rate either, particularly taking into account the fuel hikes.
I'm struggling to think of anything that has gone down in price to warrant that 2.5%, but then again, they might have mean't per month. |
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Happy
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The same way public/civil servants pay is capped at 25 rise because of inflation but those same employees student loans are 4.% interest because of inflation. Confused? I am!! |
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Philip H ©
 |
Everyone else got a 93% payrise I presume. I must have missed something. |
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beetlebug
|
It must be jelly babies |
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starcp76
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with a abacus |
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ξήĢŁĭŞĦ ŗǾşξ ©® ღஐღ
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OMG im financially minded, but hoinestly, truthfully fnd this question so geekish i peed myself with laughing |
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Just do it
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With a standard electronic calculator |
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