CPI Inflation down – releasing more presure on Bank Base Rate

Hmmm

Housae Prices seem to be bucking the trend and currently sky-rocketing!!

Funnily enough the latest ONS data for October house prices also shows the index fell from 186 in October to 184.9 in November.

Great article Neil, but my experience is the Government never give us a true account of inflation as we experience it in reality. Yes inflation is lower than it was, but prices are still rising, albeit slowly than before.

Utilities are going up, meat and veg are through the roof, phone bills, water bills are up. Petrol is high despite what they say. Energy prices have risen 137% since 06 – all we need now is wages to follow!

But I think its wise to say, wages in real terms have stayed stagnant or in fact fallen.In my opinion, inflation is A LOT higher than the calculation they try to fool us with – I’d put my house on it

Hi Dan,

Yes you are quite correct. Wage inflation in general has fallen a long way behind CPI inflation/the cost of living.

Normally when you have inflation it is caused by demand from wages increasing (demand lead inflation), but this is inflation mostly caused by external forces out of our control. Without the normal proportional wage increases you are feeling the inflation even worse than you would have done in the past.

Hence your comments are understandable, but the ONS are actually independent from the politically elected government.

I agree with Dan.
It also depends on income level – if your domestic fuel costs are over 10% of your income you will notice the price increases more.
I would guess that a low-income family’s ‘basket’ has a much higher inflation figure.

Hi Neil,

It’s good to hear everything is getting cheaper and we have a lot more surplus cash in our pockets (and stop laughing -its rude) – because of these ‘official figures’ 🙂

Reading the article and the general news about the CPI, there appears to be a BIG misprint. They’ve inadvertently put a decimal point – it should read, “drops from 27% to 22%”.

But in all seriousness, inflation is running at least 10% not the 2.2% this government/ONS would have you believe.

Just remember, when you can’t afford to eat or keep warm it’s simply an ‘illusion’ (and that’s ‘official’ 🙂

Reply to the comment left by “Dan Smith” at “13/11/2013 – 11:43“:

Hi Dan,

The figures are year on year not cumulative so over the past 4 years the effect of inflation will seem much higher than the current figures.

Don’t forget my disclaimer that the recent fuel price increases have not had an effect in these figures as well.

Reply to the comment left by “Ian Simpson” at “12/11/2013 – 15:00“:

skyrocketing they are not except in a few central London locations, the rest of the country are seeing very modest rises, in fact some areas are still falling, exaggerating does not help.

November ONS data shows inflation is now down to 2.1% however core inflation is up slightly to 1.8% from 1.7%.

So nothing to get excited about other than the presure is still off Interest rate rise with inflation at about target levels.