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RPI to 6% !

including Budgets
stevensfo
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RPI to 6% !

#458732

Postby stevensfo » November 17th, 2021, 11:49 am

October figures:

CPI 4.2%
RPI 6.0%

https://www.ons.gov.uk/economy/inflationandpriceindices

Steve

PS Smile bank offers a savings rate of 0.03% but for Smile customers, goes up to a whopping 0.09%! :lol:

Alaric
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Re: RPI to 6% !

#458736

Postby Alaric » November 17th, 2021, 11:59 am

stevensfo wrote:October figures:

CPI 4.2%
RPI 6.0%
:


Those who regularly shop the old fashioned way may have noticed this. A pint of milk that was 50p is now 55p. Goods priced at £ 1.00 are now £ 1.25 or £ 1.30. Examining a recent receipt showed that many prices seemed to be multipliers of 25p. A fiver for a pint of beer is becoming common as is £1.499 for a litre of petrol.

PhaseThree
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Re: RPI to 6% !

#458737

Postby PhaseThree » November 17th, 2021, 12:01 pm

stevensfo wrote:October figures:

CPI 4.2%
RPI 6.0%

https://www.ons.gov.uk/economy/inflationandpriceindices

Steve

PS Smile bank offers a savings rate of 0.03% but for Smile customers, goes up to a whopping 0.09%! :lol:


CPIH (probably the most useful from my point of view) is at 3.8%
The full set of differing indices can be found here :- https://www.ons.gov.uk/economy/inflationandpriceindices

gryffron
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Re: RPI to 6% !

#458826

Postby gryffron » November 17th, 2021, 4:30 pm

So according to: https://assets.publishing.service.gov.u ... ndices.pdf

CPIH includes rent equivalence - as a (lousy?) proxy for homeowner housing costs
RPI includes mortgage rates. Which haven't gone up. So why is RPI so high?

Gryff

gryffron
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Re: RPI to 6% !

#458831

Postby gryffron » November 17th, 2021, 4:40 pm

Ah. Answering my own question. Apparently rates for future 2 years fixed mortgages have gone up a fair bit in the last month. In anticipation of BoE base rate rises. Although this cost will have affected very few people yet, the index is presumably based on average rates rather than average payments.

https://www.ft.com/content/42299ac9-cb5 ... 6f3c7c5c7b

Gryff

Alaric
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Re: RPI to 6% !

#458832

Postby Alaric » November 17th, 2021, 4:41 pm

gryffron wrote: Which haven't gone up. So why is RPI so high?


It measures the prices of a portfolio of goods and services. These prices have increased. It's like the FTSE 100 Index. If the prices of shares, particularly large cap ones increase, the FTSE 100 Index increases in value.

BT63
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Re: RPI to 6% !

#459099

Postby BT63 » November 18th, 2021, 3:04 pm

Medium inflation with very low interest rates and moderately rising wages is just what indebted governments want.......until the positive feedback mechanism starts to cause lenders to squeal.

I strongly doubt governments and central banks will take inflation seriously until its effects become painful and disruptive enough to cause voters to complain. It would not surprise me if we eventually return to the 1970s.

I have been tilting my portfolio towards a more inflationary and unstable world. Perversely, I hope my recent investments don't do well.

yorkshirelad1
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Re: RPI to 6% !

#459220

Postby yorkshirelad1 » November 19th, 2021, 10:32 am

stevensfo wrote:October figures:

CPI 4.2%
RPI 6.0%

https://www.ons.gov.uk/economy/inflationandpriceindices

Steve

PS Smile bank offers a savings rate of 0.03% but for Smile customers, goes up to a whopping 0.09%! :lol:



And I offer the concept of invisible inflation. You want a carton of orange juice, you usually buy own label. Due to shortages, there is a gap on the shelf where that is stocked, so you are seduced into buying the premium OJ, which is twice the price. Prices of the items haven't gone up, what you pay for the item you want has gone up ....

dealtn
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Re: RPI to 6% !

#459320

Postby dealtn » November 19th, 2021, 3:35 pm

yorkshirelad1 wrote:And I offer the concept of invisible inflation. You want a carton of orange juice, you usually buy own label. Due to shortages, there is a gap on the shelf where that is stocked, so you are seduced into buying the premium OJ, which is twice the price. Prices of the items haven't gone up, what you pay for the item you want has gone up ....


And I offer the methodology guidelines of the produced figures.

https://www.ons.gov.uk/economy/inflatio ... iandrpiqmi

If the product ceases to be available, a replacement product is chosen and quality adjustment may be required.


It doesn't mean individuals don't have substitution effects on their individual circumstances, but does mean these (should be) are removed in the produced and aggregated and published indices.

Arborbridge
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Re: RPI to 6% !

#459325

Postby Arborbridge » November 19th, 2021, 3:57 pm

And whichever way you look at it, the Tories were both lucky and snide to give go back on the triple lock, with pensions going up 3.1% (so I'v been told). You could say the Treasury were lucky that inflation didn't take off earlier, as it will not show up in the new pension amount, yet the costs for pensioners will. So instead of a one-off chance to allow pensions to catch up little, the opposite has happened.


Arb.

1nvest
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Re: RPI to 6% !

#460205

Postby 1nvest » November 22nd, 2021, 10:56 pm

Arborbridge wrote:And whichever way you look at it, the Tories were both lucky and snide to give go back on the triple lock, with pensions going up 3.1% (so I'v been told). You could say the Treasury were lucky that inflation didn't take off earlier, as it will not show up in the new pension amount, yet the costs for pensioners will. So instead of a one-off chance to allow pensions to catch up little, the opposite has happened.

Arb.

Which also affects all those yet to retire. In the US the higher inflation was added, so their pensions move that bit further ahead of the UK, for all of time.


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