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Tuesday, February 17, 2009

RPI Falls

The Retail Price Index (RPI) fell to an annual rate of 0.1% in January, giving rise to fears of deflation.

Despite the fall, the cost of living as experienced by those who inhabit the real world (as opposed to the statisticians' virtual reality), feels uncomfortably high.

Power and gas prices have risen significantly over the last year, as have food prices. This year's council tax rises will also be inflation busting, averaging around 4%-5%.

Low "inflation" or not, the actual cost of living remains ruinously high for many families at the moment.

3 comments:

  1. Grant1:02 PM

    Ken,

    How many 'Cost of Living'Indices are there?

    I have just received a statement form Legal & General which includes a not about "Update to Registrar's Fee.

    "On 01 April 2009 the Registrar's Fee, which is deducted form all Legal & General Authorised funds will increase in line with RPI by 4.2% from £14.34 to £14.94 per holding per annum."

    So, RPI, 4.2% or 0.1% ?


    Grant

    ReplyDelete
  2. Grant

    They have muddled it up with the CPI, I think.

    Ken

    ReplyDelete
  3. You could be right Ken.

    Or they may be trying it on on the basis that people probably will not even think about what it is telling them.

    If it's a fiction I wonder of the number are taken from Douglas Adams? Had to add the decimal point as they probably could not get away with 42%.


    Grant

    ReplyDelete