The true rate of inflation

  lofty29 11:58 04 Apr 2008

I wonder what the real rate of inflation is now, if they used the old system such as back in 80's the present RPI leaves so much out, with the mortgage rate now up to 7+%, the governments figures of around 2-3% are just such a con-trick, some people are saying that the real rate pre RPI is around 4% and if they used the old system I bet it would be nearer 7%

  DippyGirl 13:44 04 Apr 2008

Gas and electric prices up by mid-teen % for last two years
Petrol £1+ a litre - going to the garage is getting to be a very scarey experience.
2, 3, 4% who is kidding who?

  Stuartli 14:00 04 Apr 2008

The Government uses a method of deciding on the level of inflation on terms that suit its own purpose.

Everyone in the country is well aware that inflation is far higher than that portrayed by the Government - and the Government itself is equally aware that they do.

Even two-and-a-half per cent inflation might sound low but take, say, a figure of £1,000 and leave it untouched for 20 years. By the end of that time it will be worth only £500.

OK, you might/will receive interest on the £1,000, but it will attract tax; few escape the Government's clutches...:-)

Far better, it seems to me, to buy whatever you need when required as saving these days, because of such low interest rates, is hardly worthwhile.

  anskyber 14:01 04 Apr 2008

Compare the two with the latest published figures.

Pensions, incidentally use RPI not CPI. click here

  Monoux 14:06 04 Apr 2008

Surely it's 35% because MPs said they would only seek pay increases in line with inflation and they have just put in for a 35% increase.

Duck everyone pink pigs flying again

  johndrew 14:27 04 Apr 2008

Do I sense a lack of confidence in the statements made by our august leaders??? You really should trust them even when the squadrons of porkers (or should that be porkies??) come flying through after all they are honorable men (but so was that chap in the Ides of March ..). :-)

More seriously, with energy prices driving costs up and BoE base rate being rather meaningless as lenders are setting the rates they believe are necessary to reduce mortgage demand, it is difficult to see how a rate of even 5% for inflation is particularly high.

  DippyGirl 14:38 04 Apr 2008

Question - How do the pigs fly, when they spend so much time with their snouts in the trough?
<No intention to upset real porkers>

  johndrew 14:38 04 Apr 2008

They spin their tails very quickly.

  peter99co 14:56 04 Apr 2008

If the interest rate on savings is reduced by the inflation rate you can soon see that saving can cost you money on low interest accounts.

  Monoux 15:08 04 Apr 2008

Everyone knows polititions are full of hot air --which rises -- the tail spining acts like a propeller and drags them along

  anskyber 15:12 04 Apr 2008

You guys really aught to get out more rather than waiting for the next subject to come along and whinge and chat room about.

Sad really.

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