Inflation


R

Ret.

Inflation up to 5.2% and RPI at 5% - which is excellent news for those on
RPI linked pensions because their April increase is linked to the Sept -
Sept RPI figure. Especially good news in view of the fact that inflation is
expected to now start falling.

Ret.
 
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A

Andy Pandy

Ret. said:
Inflation up to 5.2% and RPI at 5% - which is excellent news for those on
RPI linked pensions because their April increase is linked to the Sept -
Sept RPI figure. Especially good news in view of the fact that inflation is
expected to now start falling.
Interesting that CPI is now higher than RPI due to falling house prices. Wonder
how many people will start whinging that the govt are using RPI for benefit
increases instead of CPI?

There was even talk about RPI possibly being negative by this time next year,
due to falling oil, domestic fuel, and house prices.
 
J

Jonathan Bryce

Ret. said:
Inflation up to 5.2% and RPI at 5% - which is excellent news for those on
RPI linked pensions because their April increase is linked to the Sept -
Sept RPI figure. Especially good news in view of the fact that inflation
is expected to now start falling.
It's not excellent news because the things pensioners spend their money on
have gone up by a lot more than 5% - more like 15%.
 
A

Andy Lord

It's not excellent news because the things pensioners spend their money on
have gone up by a lot more than 5% - more like 15%.
I was thinking about this recently. Isn't there a case for the
establishment of a new price index just for the purposes of
establishing fair increases in state pensions and other benefits?

It should be easy enough to establish a more appropriate basket of
products and services likely to be purchased by pensioners and certain
classes of benefit claimants.
 
M

M Holmes

Andy Pandy said:
Interesting that CPI is now higher than RPI due to falling house prices. Wonder
how many people will start whinging that the govt are using RPI for benefit
increases instead of CPI?
Ain't helping me any. Our pay agreement was based on RPI. From the BBC
website, my personal inflation rate is 7.6%, so a pay increase of 5%
just won't suffice. There oughta be a Beer Index for these purposes.

FoFP

P.S: I'd like to take this opportunity to reassure all my barmen (and
barbabes) that I won't be cutting down my consumption just for some
minor niggling Depression.
 
A

Andy Pandy

Andy Lord said:
I was thinking about this recently. Isn't there a case for the
establishment of a new price index just for the purposes of
establishing fair increases in state pensions and other benefits?

It should be easy enough to establish a more appropriate basket of
products and services likely to be purchased by pensioners and certain
classes of benefit claimants.
These do one:

http://www.alliancetrust.co.uk/research_home.htm

It works the other way too - for instance RPI includes increases in mortgages,
which pensioners don't tend to have. Similarly for means tested benefits which
don't include housing costs (IS, JSA etc). On average it probably evens out, or
possibly even benefits pensioners and benefit claimants to use RPI rather than a
more realistic measure.

It's likely that fuel prices will fall in the next year, and food inflation
ease, so in 12 month's time you could be looking at a lower inflation rate for
pensioners than average.
 
R

Ret.

Jonathan Bryce said:
It's not excellent news because the things pensioners spend their money on
have gone up by a lot more than 5% - more like 15%.
True for some pensioners - but I'm a public sector pensioner who retired at
54 on an RPI index linked pension. I'm beginning to feel like a pariah with
all the negative press comments about public sector pensions - but when I
took on my public sector job, 30 years prior to my retirement 7 years ago,
apart from being aware that the job had a 'good' pension scheme, it never
occurred to me just how good it would turn out to be. I paid off my mortgage
with the lump sum I also received and, TBH, my lifestyle has not changed one
iota from when I was at work. I recognise that I am very privileged in these
difficult times. A 5% pension increase will be a real bonus for me - and
more than I was expecting.

Ret.
 
N

Noon

True for some pensioners - but I'm a public sector pensioner who retired at
54 on an RPI index linked pension. I'm beginning to feel like a pariah with
all the negative press comments about public sector pensions - but when I
took on my public sector job, 30 years prior to my retirement 7 years ago,
apart from being aware that the job had a 'good' pension scheme, it never
occurred to me just how good it would turn out to be. I paid off my mortgage
with the lump sum I also received and, TBH, my lifestyle has not changed one
iota from when I was at work. I recognise that I am very privileged in these
difficult times. A 5% pension increase will be a real bonus for me - and
more than I was expecting.
Public sector wages are low, pensions are good.
 
M

Mark

Ain't helping me any. Our pay agreement was based on RPI. From the BBC
website, my personal inflation rate is 7.6%, so a pay increase of 5%
just won't suffice. There oughta be a Beer Index for these purposes.
I dream of 5%. I expect to get less than 2% as usual :-(

I can't get either the BBC or the ONS inflation calculator to work
BTW.


--
(\__/) M.
(='.'=) Owing to the amount of spam posted via googlegroups and
(")_(") their inaction to the problem. I am blocking most articles
posted from there. If you wish your postings to be seen by
everyone you will need use a different method of posting.
See http://improve-usenet.org
 
R

Ret.

Tim said:
But pensions are just delayed wages - so what
now, are the wages (overall) low or good? ;-)
I'm not in a position to compare but financial journalists have begun to
claim that public sector wages have now overtaken the private sector and so
both their wages *and* their pension is good.

Ret.
 
S

Simon

Mark said:
I dream of 5%. I expect to get less than 2% as usual :-(

I can't get either the BBC or the ONS inflation calculator to work
BTW.
HMRC staff have been offered 2% this year and then 1% per annum for 2
subsequent years. In the same breath they increase National Minimum wage by
5%, in line with inflation, and, in the teeth of all the joblosses from the
Credit Crunch, continue to shed a further 10,000 staff and still expect 10%
increases in productivity each year.

Its not surprising therefore, that many staff are suggesting that managers
stick something large and sharp in orifices not designed to receive such
things.

Simon
 
S

Simon

Ret. said:
I'm not in a position to compare but financial journalists have begun to
claim that public sector wages have now overtaken the private sector and
so both their wages *and* their pension is good.

Ret.

I have 34 years service but if I took Early retirement, my pension, would be
frozen until my 55 birthday. This would mean living on a fixed sum for 4 and
a bit years, with inflation running at twice the level it was a year or so
ago.

Granted my lump sum would see me back in the black, but I would not get that
much left over, so its keep it up for now.

Mind you, I am not sure where the 5% comes from as both my gas and electric
bills have gone up 17% or more this year, and I cant get out of a suermarket
having spent less than £100, car costs have gone through the roof and my
holiday in USA has doubled in three years, and I only have to pay for
flights.


Simon
 
C

ceres

True for some pensioners - but I'm a public sector pensioner who retired at
54 on an RPI index linked pension. I'm beginning to feel like a pariah with
all the negative press comments about public sector pensions - but when I
took on my public sector job, 30 years prior to my retirement 7 years ago,
apart from being aware that the job had a 'good' pension scheme, it never
occurred to me just how good it would turn out to be. I paid off my mortgage
with the lump sum I also received and, TBH, my lifestyle has not changed one
iota from when I was at work. I recognise that I am very privileged in these
difficult times. A 5% pension increase will be a real bonus for me - and
more than I was expecting.
Don't feel too celebratory. Since you are a pensioner and don't have
a mortgage, your personal inflation rate is likely to be well above
5%, so your increased pension won't in fact buy you as much this year
as it did last, and you'll actually be worse off.

Moreover, if you take the RPIX as the best indicator of your personal
inflation rate since you don't have a mortgage, it's currently 5.5%.
Unless all your savings have been invested at a rate of at least
6.875% gross over the last year, which is doubtful if you still have
access to them all, they won't buy you as much this year either. So
you'll be doubly worse off.

Buy the Champagne now by all means as a hedge against inflation, but I
don't see much cause to drink it.
 
R

Ret.

ceres said:
Don't feel too celebratory. Since you are a pensioner and don't have
a mortgage, your personal inflation rate is likely to be well above
5%, so your increased pension won't in fact buy you as much this year
as it did last, and you'll actually be worse off.

Moreover, if you take the RPIX as the best indicator of your personal
inflation rate since you don't have a mortgage, it's currently 5.5%.
Unless all your savings have been invested at a rate of at least
6.875% gross over the last year, which is doubtful if you still have
access to them all, they won't buy you as much this year either. So
you'll be doubly worse off.

Buy the Champagne now by all means as a hedge against inflation, but I
don't see much cause to drink it.
Fair points - but the rise is more than most workers will be getting - and
they are facing the same costs.

Ret.
 
M

Mark

HMRC staff have been offered 2% this year and then 1% per annum for 2
subsequent years. In the same breath they increase National Minimum wage by
5%, in line with inflation, and, in the teeth of all the joblosses from the
Credit Crunch, continue to shed a further 10,000 staff and still expect 10%
increases in productivity each year.

Its not surprising therefore, that many staff are suggesting that managers
stick something large and sharp in orifices not designed to receive such
things.
I guess it's not the managers' fault? Doesn't the government set
public sector pay?

--
(\__/) M.
(='.'=) Owing to the amount of spam posted via googlegroups and
(")_(") their inaction to the problem. I am blocking most articles
posted from there. If you wish your postings to be seen by
everyone you will need use a different method of posting.
See http://improve-usenet.org
 
M

Mark

I have 34 years service but if I took Early retirement, my pension, would be
frozen until my 55 birthday. This would mean living on a fixed sum for 4 and
a bit years, with inflation running at twice the level it was a year or so
ago.

Granted my lump sum would see me back in the black, but I would not get that
much left over, so its keep it up for now.

Mind you, I am not sure where the 5% comes from as both my gas and electric
bills have gone up 17% or more this year, and I cant get out of a suermarket
having spent less than £100, car costs have gone through the roof and my
holiday in USA has doubled in three years, and I only have to pay for
flights.
We have found our monthly food bill has increased by nearly 50% in the
last two years.

--
(\__/) M.
(='.'=) Owing to the amount of spam posted via googlegroups and
(")_(") their inaction to the problem. I am blocking most articles
posted from there. If you wish your postings to be seen by
everyone you will need use a different method of posting.
See http://improve-usenet.org
 
S

Simon

Mark said:
I guess it's not the managers' fault? Doesn't the government set
public sector pay?

True but I suspect that at some point a senior manager has sat down with a
minister and a conversation has gone along the lines of;-

Manager: Its time for the pay negotiatons again.
Minister: Again, I though you are supposed to be reducing your budget.
Manager: Yes, but the cost of living has gone up.
Minister: I know, but we cocked up on doctors pay and the banks are
struggling, cant you get by on what you have.
Manager: Maybe, but I am going to get it in the neck from my staff.
Minister: tell them they are lucky to stil have their jobs.
Manager: That will work for some, but remember I have to sack 20% of them
this year.
Minister: look, get it done on the cheap and there is a knighthood in it
for you.
Manager: Yes, minister
 
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S

Simon

Mark said:
We have found our monthly food bill has increased by nearly 50% in the
last two years.

--
I know, and the cost of oil has crashed, petrol has gone down by nearly 25%
in the states but how much has ours gone down, about 5% - 10% if we are
lucky.
 

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