I really should have posted something on those shocking inflation numbers when they came out last week. In November, inflation, measured by the retail price index, rose to 4.3 per cent, up from 4.2 per cent in October. RPIX inflation, which is all the all items in retail price index except mortgage interest payments – was 3.2 per cent in November, up from 3.1 per cent in October.The chart above highlights an important issue regarding UK inflation today. The consumer price index under-states inflation by about 2 full percentage points. Notice how the divergence is systematic. Since 2005, the RPI has been consistently above the CPI.
However, the Bank of England have the CPI as their bogus target. Yet data from the Office of National Statistics shows clearly that actual high street inflation is much higher.
7 comments:
Yet another wonderful lie courtesy of Gordons magical smoke and mirrors economy.
I wonder when the public will finally wake up to the true state of affairs rather than the published propoganda?
Hell, anyone who buys anything knows the true state of affairs..strangely the public havent marched on whitehall...yet.
As long as people have access to the endless credit that lets them buy their ipods and flat screen tv's, nobody cares what the price is.
Now that the credit is tightening, it's going to be an interesting new year.
I think the RPI understates the inflation rate as well. In any case I will probably rocket this time next year, with the Central banks printing to combat the credit crunch.
Those CPI numbers are bogus.
Until the BoE finds the moral courage to start raising interest rates to combat the inflation we can all see in every part of our daily lives, there will be no housing crash. So we'd better forget this blog for another few years until there is a REAL crisis.
Speedtheplow: ¨every part of our daily lives, there will be no housing crash.¨
I am not so sure, the credit crunch will do it. Most people require a morgage, if you can´t get one, then doesn´ t matter what the interest rate is you can´ t buy the house.
Wadayoumean ´moral courage´ what is the matter with plain old courage?
Plain old courage disappeared with the Blitz.
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