UK Inflation up - above government target

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/7092144.stm

The UK's inflation rate stood at 2.1% in October, higher than September's 1.8% and above the government's 2% target, official figures show.

The main upward pressure on the Consumer Prices Index (CPI) came from rising food and petrol prices. (Yeah, but plasma TV's are really cheap now).

The RPI inflation measure, on which many pay deals are based, rose to 3.1% in October from 2.8%.


Next year is going to be fun!

[xoggoth]

Meanwhile what is the REAL inflation rate? AKA actually based on average of what people pay out of their gross salary and not excluding this, that and the other that it is not convenient for the government to include.

[Troll]

Easy... just take oil & food out of the CPI & RPI... call it a 'modernising' exercise or similar.

Sorted ...every things fine nothing to worry about!

[Bagpuss]

Mortgage repayments are not factored into inflation figures, and what is the bigest household expenditure? (obviously it may be porn for some of you)

[TimberWolf]

Council taxes?

[DimPrawn]

Mortgage repayments are not factored into inflation figures, and what is the bigest household expenditure? (obviously it may be porn for some of you)

That is because, if base rates rise to counter inflation, mortgage payments go up, and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise and so inflation figure would rise and interest rates would rise and then base rates would have to rise and that would cause mortgage payments to rise.

HTH

[Bagpuss]

Interest on mortgage repayments used to be in inflation statistics

While the retail price index does not include the costs of buying a house (becausethis is considered an investment), it does include the costs of mortgage interest payments (the interest-only component of mortgage repayments). There is also adepreciation component, which measures the cost toowner-occupiers of maintaining their house at aconstant quality, such as occasional renovation.

HTH etc.

[sasguru]

Interest on mortgage repayments used to be in inflation statistics

While the retail price index does not include the costs of buying a house (becausethis is considered an investment), it does include the costs of mortgage interest payments (the interest-only component of mortgage repayments). There is also adepreciation component, which measures the cost toowner-occupiers of maintaining their house at aconstant quality, such as occasional renovation.

HTH etc.

When was it taken out?

[DimPrawn]

Interest on mortgage repayments used to be in inflation statistics

While the retail price index does not include the costs of buying a house (becausethis is considered an investment), it does include the costs of mortgage interest payments (the interest-only component of mortgage repayments). There is also adepreciation component, which measures the cost toowner-occupiers of maintaining their house at aconstant quality, such as occasional renovation.

HTH etc.

RPI (the one used for pay settlements) that is heading for 4% does include mortgage interest payments.

The CPI figure (the one the BoE uses and is currently above 2%) does not, for the reason I mentioned above on positive feedback loop.

HTH

[Bagpuss]

The main statistic once did include mortgage repayments, now the other factored down so low it is meaningless. The true rate of inflation like the true level of unemployment must be in double figures.