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By (user no longer on site) OP
over a year ago
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Apparently the recent (treasury?) growth forecasts for our economy were rather pessimistic. Independent BoE have now said growth will be stronger than previously predicted, with wages likely to outstrip inflation by the end of the year. As a result interest rates may have to rise sooner than originally planned?
Seems we can’t win! |
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Stop being disingenuous.
Growth rate is up and being adjusted up because of the strong growth rate across the world.
BUT
The UK growth rate is still significantly lagging behind that of the rest of the world.
So not the the good news story that many are portraying it as. In fact if you are poor and especially if you are on benefits (in work or not) it actually represents even worse news for you with CPI inflation index rising to 2.9%, meaning that RPI (which is a more accurate measure of day to day living costs) will be running at 8 to 10 maybe 11 or 12% while benefits are either frozen or rising at about 1%.
Not such a good story when viewed in the round is it? |
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"CPI is 2.9%..... RPI is actually 4.1%. Highercthan CPI.....but to suggest it is in double figures is fanciful...."
It seems our understanding of the reality of CPI and RPI differ. I think you take the headline figures as published by the government which includes their monthly 'adjustments' (fiddlings) I make an effort to undo these (be it ever so crude). As a result I have found that the difference between the lower and higher of the indices is usually in the region of double but can at times be over triple. I have also noticed that this difference reflects what I experience in day to day living. Not authoritative I'll grant you, but I would suggest more accurate than the figures published by the government and BoE who both have vested interests in playing down negative news. |
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By *andS66Couple
over a year ago
Derby |
"CPI is 2.9%..... RPI is actually 4.1%. Highercthan CPI.....but to suggest it is in double figures is fanciful....
It seems our understanding of the reality of CPI and RPI differ. I think you take the headline figures as published by the government which includes their monthly 'adjustments' (fiddlings) I make an effort to undo these (be it ever so crude). As a result I have found that the difference between the lower and higher of the indices is usually in the region of double but can at times be over triple. I have also noticed that this difference reflects what I experience in day to day living. Not authoritative I'll grant you, but I would suggest more accurate than the figures published by the government and BoE who both have vested interests in playing down negative news."
So you make crude calculations to come up with an accurate answer? |
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"So you make crude calculations to come up with an accurate answer?"
No I make observations and draw conclusions...
CPI is based on a 'basket' of goods and services. The food element is things like a small packet of... a large tin of... a portion of...
If the price remains the same there is no inflation, the fact that the portion that was a premium brand has been substituted for the cheapest own brand is not taken into account. Nor are any reductions in size. In fact this method of manipulating figures is now called 'shrinkflation'.
Funny how the media do not give much coverage to it. I wonder why that is? |
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By *asyukMan
over a year ago
West London |
As stated we've leapt from first to last in G7 GDP growth since Brexit.
The currency had weakened as a direct consequence of Brexit pushing up inflation.
Manufacturing exports have increased, mainly to the EU, but the balance of trade deficit has increased.
You can decide if this is a good thing or not.
We have inflation and some growth. The BoE has to control inflation and the only lever they have is interest rates.
Government could increase tax on multinationals and rich individuals. That would raise revenue to help pay for infrastructure, education or health to improve competitiveness, but with Brexit coming are they going to want to upset anyone? To be fair, have they ever regardless of Brexit? |
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