Over the past year it's been quite difficult to find anything that hasn't increased in price less than 5%.

Today we were told that the rate of inflation has rised to between 3.3(CPI) and 4.3%(RPI).

Now we all know that the way inflation is calculated is not set in stone. Politicians will use whatever means they can to massage the figures. Years ago, I remember that there was a lot more discussion on inflation than there is now, and economists would all have their own views on how to best to calculate the 'true' rate.

What do you include? What do you NOT include? One figure for the whole country or variations for different areas...eg inner cities vs rural areas and people..eg working family vs retired couple.

According to the BBC website, increases in food, fuel, transport, services etc are offset by cheaper DVDs, computers, flat screen tvs etc.

Also, I don't believe that council tax is included.

This had led some people to suggest that retired people should sell their houses, learn to eat electronic gadgets and build shelters out of old PCs.

So, are those figures realistic? Is life about 3-4% more expensive than last year? What would you say is the true rate of inflation?

Steve

Who knows what the true rate of inflation is, I certainly don't. What I'm more certain of is that an increasingly docile population might have a moan about it but there doesn't seem to be the anger that stops the government getting away with this sort of propaganda.

it certainly feels more than 3-4%
as you say, the trouble is a government will use whatever figures they want to put spin to suit themselves - which this lot is really quite adept at - probably took lessons from Tony Blur.

It always seems odd to leave out things like council tax - after all, most of us have to pay it.
As to flat screen TVs ... there isn't a need to buy them surely - a big discrepancy between 'need' and 'want' but that has always been there.

A big topic that needs input apart from just you and me Stevensfo

I agree - it's invalid to try to balance out increases in things like food and heating with lower prices in things we don't actually need.

Our council tax went up a few years ago by over 27%, and has of course continued to increase.

More recently I have noticed fairly hefty increases in the price of milk and bread. Are the farmers getting a better price for their milk? I doubt it.

And of course, inflation doesn't include house prices or rent anymore, which okay, ought to be falling just now *optomistic* but...

On a more personal level, nor does anyone consider the cost of tuition fees and loans for students. The amount of maintenance loan I recieve is falling year on year (though mainly due to my parents having the audacity to earn more, despite not subsidising me particularly) with the cost of food, buses etc increasing. Tuition fees have risen again, and of course, the amount of interest we pay on our loans (which is supposed to match inflation, non?) is now over 4%...

In my opinion inflation is way more that 3-4%.

I don't know what I'd actualy use to calculate it but do know that I have far less money than this time last year.

The price of Gas and Electricity alone has shot through the roof, not to mention fuel, are these things not included?

yes, today there is a comment that Gas and Electricity prices may rise by 40% in the near future.
Has your income gone up by that amount?

There is noticeably no leadership from Westminster... and hasn't been for at least 10 years. It's all downhill from here ...

Probably more in the region of 10% - at the moment - but likely to rise well above this.

I've not increased any of my existing private students fees, so far..... and we have the Browne government telling us that nobody should be given inflationary pay rises. How the h*e*l*l do they think people will pay their bills then?!

Apparently we are only suffering from 'imported inflation', not any home grown inflation. Does this government think we all fell out of the sky with the last shower of rain?....

The thing the UK suffers from the most is bad management in just about everything, from the government to utility companies, councils, local authorities etc. etc.

that is very true.
Too much spending in good times, and borrowing enormous amounts of money (at our - taxpayers' - expense of course) by Mr Prudence Brown.
Lots of people in the street could have told him that you can't borrow money and not have to account for it and pay it back at some time.

Time that lot in Westminster faced reality and some would lose their seats.

The thing the UK suffers from the most is bad management in just about everything, from the government to utility companies, councils, local authorities etc. etc.

include the NHS in that list!

Here is a personal inflation calculator: http://www.statistics.gov.uk/pic/

OK, it's from the Office of National Stats, but it does give you a better idea what your inflation is. Last time I played with it, headline inflation was much lower than it is now, and yet my personal (well, household) was at about 6%

I just keep thinking back to when Labour first came to power, there was loads of talk about stopping the boom and bust cycle - it's easy to govern during a boom, but I think now they're bust!

It's a only little thing, but the cost of Tesco Value butter (an indespensible baking item) has risen from a humble 25p to an almost in line with Tesco-more-expensive-than-value-but-cheaper-than-finest 85p. That's over 300% inflation!

Bah! My council tax went up over 5% this year, food bills are going up, fuel prices are increasing and the stock market seems to be in freefall. So how much of a pay increase do I get from my salaried job? 0%, because I'm apparently already at the top of the pay scale for my grade.

(cont. p94)

I have switched to many of the Tesco Value products and given they are often made on the same production line to the same recipe as the more expensive versions, I have yet to notice a marked difference in taste/quality. It is already saving me £10-£15 per week on a shop. Even the Value Vodka is worth drinking.

Our Lidl vodka just went up from 3.5 Euros to 4.5 Euros!!!

Even the Scottish whisky is over 6 euros now!

Inlation is hitting the whole of Europe!


Steve