Inflation


T

Tamale-Loco

How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
Is it done on weight/capacity/number of items per unit......or just "what was offered last
week and went up this week"?
For instance, here are a few examples:
Say some items i buy on a regular basis are (say) a litre bottle of Cola, a packet of 10
doughnuts and a double pack of kitchen towels
Take the Cola as 1st example.....say this costs One Pound.They reduce the volume to (say
90 millilitres, and reduce the price by, say 5p to 95 pence
Now, take the packet of 10 doughnuts. They either reduce the ammount to 9 per packet, or
keep the same ammount per packet, but reduce the size of each doughnut, and sell the
packet at the same price
The kitchen towels were 60 sheets per roll, but they are subject to a "50% more" offer for
a short time, then, when the offer ends the actual rolls now contain only 44 sheets per
roll.
I guess i am not explaining this too well, but what i *think i mean is does it get based
on "pence per 100 mls" or pence per 10 sheets, etc?
I am not asking if its legal for stores to do this or not, just whether those few examples
would have an effect (and to what degree) on the RPI

Tamale-loco
 
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T

Tiddy Ogg

How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
Is it done on weight/capacity/number of items per unit......or just "what was offered last
week and went up this week"?
I can't answer your question, others will, but you raise an
interesting point.
The shaving of size/quantity of things goes on surreptitiously, eg,
toilet rolls shrank in number of sheets, and in width, as have kitchen
towels... well you've got to be careful with buying these if you have
an old-fashioned dispenser.
Work out the amount of paper saved by chopping 10 mm off the width...
it's a fair bit.
Now I'll leave it to someone to point you to the appropriate .gov.uk
web site.

Tiddy Ogg.
http://www.tiddyogg.co.uk
 
R

Ronald Raygun

Tiddy said:
The shaving of size/quantity of things goes on surreptitiously, eg,
toilet rolls shrank in number of sheets, and in width, as have kitchen
towels... well you've got to be careful with buying these if you have
an old-fashioned dispenser.
You're expected to buy a new dispenser. Then, after another few years,
they re-introduce the bigger width and you have to buy another new one,
unless you were shrewd enough to store your old one in the attic.
 
T

Toom Tabard

Tamale-Loco said:
How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
Is it done on weight/capacity/number of items per unit......or just "what was offered last
week and went up this week"?
For instance, here are a few examples:
Say some items i buy on a regular basis are (say) a litre bottle of Cola, a packet of 10
doughnuts and a double pack of kitchen towels
Take the Cola as 1st example.....say this costs One Pound.They reduce the volume to (say
90 millilitres, and reduce the price by, say 5p to 95 pence
Now, take the packet of 10 doughnuts. They either reduce the ammount to 9 per packet, or
keep the same ammount per packet, but reduce the size of each doughnut, and sell the
packet at the same price
The kitchen towels were 60 sheets per roll, but they are subject to a "50% more" offer for
a short time, then, when the offer ends the actual rolls now contain only 44 sheets per
roll.
I guess i am not explaining this too well, but what i *think i mean is does it get based
on "pence per 100 mls" or pence per 10 sheets, etc?
I am not asking if its legal for stores to do this or not, just whether those few examples
would have an effect (and to what degree) on the RPI
You might find the answer in the essay "Phyletic Size Decrease in
Hershey Bars" by Stephen Jay Gould.

Toom
 
S

Stickems.

The RIP does not reflect any intelligent assessment of the changes in prices
or value for money as detailed in your question. It is a political, and
quite useless piece of civil service output designed to fool the general
public that things are proceeding according to plan.


| How is the Retail Price Index (and, therefore inflation?) REALLY worked
out?
| Is it done on weight/capacity/number of items per unit......or just "what
was offered last
| week and went up this week"?
| For instance, here are a few examples:
| Say some items i buy on a regular basis are (say) a litre bottle of Cola,
a packet of 10
| doughnuts and a double pack of kitchen towels
| Take the Cola as 1st example.....say this costs One Pound.They reduce the
volume to (say
| 90 millilitres, and reduce the price by, say 5p to 95 pence
| Now, take the packet of 10 doughnuts. They either reduce the ammount to 9
per packet, or
| keep the same ammount per packet, but reduce the size of each doughnut,
and sell the
| packet at the same price
| The kitchen towels were 60 sheets per roll, but they are subject to a "50%
more" offer for
| a short time, then, when the offer ends the actual rolls now contain only
44 sheets per
| roll.
| I guess i am not explaining this too well, but what i *think i mean is
does it get based
| on "pence per 100 mls" or pence per 10 sheets, etc?
| I am not asking if its legal for stores to do this or not, just whether
those few examples
| would have an effect (and to what degree) on the RPI
|
| Tamale-loco
|
|
 
T

Toom Tabard

Tamale-Loco said:
How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
Is it done on weight/capacity/number of items per unit......or just "what was offered last
week and went up this week"?
For instance, here are a few examples:
Say some items i buy on a regular basis are (say) a litre bottle of Cola, a packet of 10
doughnuts and a double pack of kitchen towels
Take the Cola as 1st example.....say this costs One Pound.They reduce the volume to (say
90 millilitres, and reduce the price by, say 5p to 95 pence
Now, take the packet of 10 doughnuts. They either reduce the ammount to 9 per packet, or
keep the same ammount per packet, but reduce the size of each doughnut, and sell the
packet at the same price
The kitchen towels were 60 sheets per roll, but they are subject to a "50% more" offer for
a short time, then, when the offer ends the actual rolls now contain only 44 sheets per
roll.
I guess i am not explaining this too well, but what i *think i mean is does it get based
on "pence per 100 mls" or pence per 10 sheets, etc?
I am not asking if its legal for stores to do this or not, just whether those few examples
would have an effect (and to what degree) on the RPI

Tamale-loco

See http://www.statistics.gov.uk/rpi for explanation. In general it is
a measure of things that don't go up in price, and excludes things
which do go up in price, and is used to calculate increases for
'inflation-proof' pensions, etc.

Toom
 
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A

Andy Pandy

Tamale-Loco said:
How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
Is it done on weight/capacity/number of items per unit......or just "what was offered last
week and went up this week"?
For instance, here are a few examples:
Say some items i buy on a regular basis are (say) a litre bottle of Cola, a packet of 10
doughnuts and a double pack of kitchen towels
Take the Cola as 1st example.....say this costs One Pound.They reduce the volume to (say
90 millilitres, and reduce the price by, say 5p to 95 pence
Now, take the packet of 10 doughnuts. They either reduce the ammount to 9 per packet, or
keep the same ammount per packet, but reduce the size of each doughnut, and sell the
packet at the same price
The kitchen towels were 60 sheets per roll, but they are subject to a "50% more" offer for
a short time, then, when the offer ends the actual rolls now contain only 44 sheets per
roll.
I guess i am not explaining this too well, but what i *think i mean is does it get based
on "pence per 100 mls" or pence per 10 sheets, etc?
Yes, basically. For a full explanation see:

http://www.statistics.gov.uk/articles/nojournal/CPI&RPI_basket_2006.pdf

http://www.statistics.gov.uk/articles/nojournal/CPI&RPI_2006_weights_article.pdf

There seem to be a load of loony conspiracy theorists around who think all inflation
measures are a con, but they don't seem to able to produce any credible evidence.
 
A

Alec McKenzie

Tamale-Loco said:
How is the Retail Price Index (and, therefore inflation?) REALLY worked out?
You seem to be confusing cause and effect. Inflation is not the
result of changes in prices - it is the other way round. As
inflation is performed, the value of money falls. As the value
of money falls, so prices are increased to compensate.
 
V

Virgils Ghost

Tamale-Loco said:
How is the Retail Price Index (and, therefore inflation?) REALLY worked
out?
They just average out the lottery results on a monthly basis ;)
 
D

Daytona

The RIP does not reflect any intelligent assessment of the changes in prices
or value for money as detailed in your question. It is a political, and
quite useless piece of civil service output designed to fool the general
public that things are proceeding according to plan.
Given the number of ignorant posts recently on exactly the same issue,
it seems as if the single issue morons who attempted to provoke a
house price crash by spreading inaccurate information have moved their
attention on to inflation.

Daytona
 
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D

Daytona

In general it is
a measure of things that don't go up in price, and excludes things
which do go up in price, and is used to calculate increases for
'inflation-proof' pensions, etc.
Given the number of ignorant posts recently on exactly the same issue,
it seems as if the single issue morons who attempted to provoke a
house price crash by spreading inaccurate information have moved their
attention on to inflation.

Daytona
 
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