In the UK - Us consumers are now struggling big time!

Wizard Keyaz

Everything is going up day by day:-

1, Petrol
2, Rice
3, Flour
4, Oil

The list is now getting riddiculous?

spinoza

Yep. But that's the case all over the world though.

MehdiMahdavikia

Petrol would be less expensive if people drove less. I just can't understand people who make short journeys in cars. It's not just bad for your health but it's clearly wasting vast amounts of petrol.

Nick 0208 Ldn

If the government want to continue usign the CPI as their measure for the rate of inflation in this country, then they need to either expand or update the basket of goods that they judge it by. Sounding like bloody idiots otherwise, whether it be politicians or economists trotting out the line that it is only at 2.whatever percent.


If you take something like wheat the rise in the prices is down to environmental factors. I heard an analyst say that it could take 12 months or more to work its way out of the system so to speak.

Besides Britons can more easily absorb rises in the cost of food, they were relaitvely low already in some areas. Places like Haiti, Nigeria, Egypt, Indonesia, they have all seen riots. The Bangladeshi government has intervened to provide rice to its citizens at a mroe acceptable price as have others.

We however have felt the pinch most acutely as goes things like utilites for one [Not that you need em to tell you that i am sure]. Then travelling/holidays thanks to the weakness of the Pound against the Euro. Petrol as has already been mentioned and so on.

Team Brian GB

Petrol would be less expensive if OPEC increased production more like.

spinoza

Can't - most of the rules about what goes in are decided at European level.

Nothing really stupid about saying that CPI is at 2.something percent though - CPI is CPI. People should understand what CPI is, which is inflation on a basket of consumer goods. Inflation on what you buy is measurable by CPI. It's an average, so you might experience more, or less. If you experience more you squeal more loudly, if you experience less you don't squeal, so people who judge its effectiveness by how loud people squeal are missing out.

The major item that doesn't go into CPI is housing costs. There's a separate index to measure for that - it's RPI. And anyone can find it using Google. Politicians shouldn't have to tell people what it is.

In summary, if you complain about CPI not being realistic, you're the spastic, not the economist or politician who's quoting CPI. Just learn what they mean - takes 5 minutes.

spinoza

They can't really, and anyway it probably wouldn't help.

skysplitter

Just cut back on the rice and flour..no problem.

Nick 0208 Ldn

I am not completely ignorant of these matters but i can sesne well enough when my passing knowledge lacks the grasp of an issue of someone esle.

But with all due respect, politicians and economists do sound like bloody idiots when they hold up the CPI rate as a measure of our quality of life or cost of living and how happy we should be about it. That was my point. And our most gracious Prime Minister *cough* has preached such a message to us the public often these past months.

Now correct me if i am wrong but CPI was not always hold sway here in Britain, and if we are to stick to it i do not feel that it is much to ask for it to be more accurate and representative.

711

You have totally failed to mention beer, cigarettes, condoms, tampons and the morning after pill. And more importantly still, Bunny Brunch - don't you even own a rabbit? I think not, with people like you no wonder our inflation strategy is so shite.

spinoza

Well, no, but it's no better and no worse than other consumption measures. I do agree that it should include housing costs to be a better reflection of cost of living, but then RPI is available, and most private sector wages are set using RPI.
The Bank of England used to target RPIX, which is RPI eXcluding imputed housing costs. It's calculated differently from CPI and comes out slightly higher. It was changed to CPI to be in line with other European countries. The basket of goods is broadly similar though, in fact I think CPI includes a more representative basket for myself personally. The problem is that we all buy different things - for example I buy less petrol and far more alcohol than in the basket - and it's purely an average measure derived from wide variance in the population at large.

Alex

Or maybe it would be less expensive if the oil companies werent making world breaking profits every year

spinoza

Nah

They don't control the oil price, and it would be foolish of them to sell below it

Nick 0208 Ldn

We here in Britain have the factor of tax in our petrol pirce, more generally though it is a question of limited supply and refining capcity.

Or take somewhere like Nigeria where three pipelines have been attacked in recent days, it is going to cut into Shell's targeted output for the next twom months. That creates concerns which feeds.

Alex

They do control the price of gasoline though

EZee

well the government could always drp a little bit of the tax on that if they actually wanted to help people out

Marching

I presume that was said with your tongue firmly planted in your cheek.

spinoza

Petrol prices are determined by refinery capacity, which is limited. It takes a while to build a refinery, but they are slowly coming onstream - in the US anyway.

MrMarcello

Milk - another overpriced item.

Marching

Steep increases in food costs have added £15 to a weekly supermarket shop for a family of four in the UK, new research suggests.

Comparison website MySupermarket.co.uk says a basket of 24 staple items including tea bags, milk and eggs costs 15% more than it did 12 months ago.

The findings are based on its price comparisons of certain everyday items at Tesco, Sainsbury's and Asda.

A white loaf was up more than 20%, from 54p to 65p, at Tesco and Sainsbury's.

At all three supermarkets, the price of a dozen medium free-range eggs was up almost 50% to £2.58, from £1.75 a year earlier.

A packet of fusilli pasta has nearly doubled, from 37p to 67p, as has the cost of butter, to 94p, from 58p.

Other items in the basket of staple goods were milk, minced beef, peas, pasta sauce, jam, corn flakes and rice.

The price of a number of fruit and vegetables bucked the trend. They were either static or had fallen from this time last April.

But this is likely to offer little comfort to the government, which has been pushing for Britons to be healthier as the figures show an average 15% increase in the overall cost of this basket of food in the last year.

This means that families spending £100 a week on average will be spending £780 a year more at a time when cash-strapped customers are also under increasing financial pressure from higher mortgage costs, petrol and energy prices.

spinoza

Not surprised. Britons should be thankful though. Have a look at this article.

http://www.nytimes.com/2008/04/18/wo...&oref=slogi n

I donated some money to the WFP after reading that. No one should have to eat mud.

Marching

Thankfully things seem to be improving with the previous corrupt president having been removed and, with new power plants & oil refinery coming along, hopefully the future will be better.

I also read that rice has fallen in price, so maybe mud is off the menu.

Dublin

Awesome! You guys could help me to do my Economics course next year.
(I know nothing about this subject).