UK Inflation up - above government target

[xoggoth]

Inflation rates should include tax too. Bet they don't. Inflation on BIK for company vans has been 1000% this year.


PS Vans should count as 80% of any realistic retail price index. RPI should only include vans, porn, massage parlours, Viz and vodka.

[shaunbhoy]

Labour governments always leave office with the economy in a worse state than they found it.

The most depressing aspect of this obvious truth is that on this occasion they have been allowed much more time to really c0ck it up big time!

[AtW]

The pound is overvalued

Against what, Turkish Lira and US Dollar? I doubt it. Pound is raising (against dolllar) not because it is strong, but because US Dollar is getting weaker and weaker.

[NoddY]

Sterling to be pulped

New La-bore will view inflation as the lesser of the evils and insist on cutting interest rates. Mervyn King is disposable if he kicks up a fuss. The pound is overvalued, the trade deficit is widening and they are scared stiff of a house price crash. The only 'solution' is to let inflation run riot.

Labour governments always leave office with the economy in a worse state than they found it.

[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.

[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

[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?

[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.

[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

[TimberWolf]

Council taxes?

[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)

[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!

[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.

[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!