Inflation is only 2%

[DimPrawn]

http://www.guardian.co.uk/money/2008....interestrates

Food prices continued their upward spiral last month, taking the annual inflation rate to 8.4%, the highest since detailed records began in 1986.

[MrRobin]

Ahh.. yes but think of all those HD-DVD players dropping rapidly in price! That obviously balances it all out.

Gordon.

[rootsnall]

What actually is in the basket of goods used to measure inflation ? It is beyond a joke at the moment that they can come up with a 2% figure. Looks like inflation is taking hold to me, time to start cranking up those interest rates.

[ratewhore]

What actually is in the basket of goods used to measure inflation ? It is beyond a joke at the moment that they can come up with a 2% figure. Looks like inflation is taking hold to me, time to start cranking up those interest rates.

Theres a report here. I can't be arsed ploughing through it...

[BrilloPad]

I hope a broadsheet will do an analysis sometime - though electricals and clothes are going down, what about food, petrol, utilities going up?

How have Liebour managed this?

[Tex]

Executive Summary

Theres a report here. I can't be arsed ploughing through it...

There lies the answer then. Food only comprises 10.3% of the standard weekly basket. Higher allocations are given to:

Recreation and Culture @ 15.3%
Transport @ 15.2%
Restaurants and Hotels @ 13.8%
Housing and Household Services @ 11.5%

Of course as we all know inflation busting tax increases aren't included anyway. After all, they're not a real cost are they?

The items added this year are:

Olive oil
Probiotic drink
Courgettes
Broccoli
Sandwich on a train
Can of pop from a vending machine
Shower head (wtf?)
Electric fan
Credit card charges
Mortgage fees
Mobile ringtone download
Diamond solitaire ring
Toothbrush
GPS system
Flat screen TV
DAB radio
Non-Film Chart DVD
Pack of Recordable DVDs
Digital photo processing


Removed were:

Vegetable oil
Brie
Sprouts
Pre-pack Vegetables
Wellington boots
Leather boots
Sunglasses (non-designer)
Glasses frames (designer)
Gemstone cluster ring
Portable TV (CRT)
VHS Video Recorder
Portable CD Player
In-Car CD Autochanger
Widescreen CRT TV
Blank VHS Cassettes
Pre-Recorded VHS Cassettes
35mm Compact Camera
Photo Developing
Outdoor Plant Pots
Digital TV Installation



Interesting reading.

[DimPrawn]

What a crock.

[hyperD]

How have Liebour managed this?

Obfuscation, misdirection, repetition and sleight of hand. I'm beginning to think brown and bliar are Penn and Teller in disguise...

[BrilloPad]

There lies the answer then. Food only comprises 10.3% of the standard weekly basket. Higher allocations are given to:

Recreation and Culture @ 15.3%
Transport @ 15.2%
Restaurants and Hotels @ 13.8%
Housing and Household Services @ 11.5%

but is not the cost of transport going up? what is the inflation rate for each of those 4 above?

[DimPrawn]

http://www.telegraph.co.uk/money/mai.../cmbills07.xml

Many of our biggest bills are soaring – the cost of food alone has risen by 17 per cent. Niki Chesworth explains how she managed to save all this and more

Families face an average increase in household bills for water, gas, electricity and council tax of 8.3 per cent this year; a rise of nearly £200.

The supermarket price of butter is up by more than 60 per cent over the year, free-range eggs by 40 per cent , cheese about 25 per cent and milk by 20 per cent.

Some brands of pasta now cost 80 per cent more. Petrol is up 19 per cent on the year to January and car insurance premiums 6 per cent.