Monday, 24 March 2008

David Cameron says government inflation figures are wrong

Glad to see the Tories are finally catching up with what everyone has know for a long time. My posts of this go back years, for example. The Telegraph has run an excellent inflation monitor for a long time too.

With the high commodity prices and rising oil price inflation here is to stay for some time. About time the Opposition to the Government focused on this

15 comments:

Bill Quango MP said...

It's tricky to find the governments 'inflation basket' anyhere.Luckily I have access to it.
Here are just some of Darlings Inflation beating products.

General items:
Meet the Fockers DVD
42" Plasma TV
Daily Mail
Playstation 2
Thermal paper fax machine
SodaStream
Pub ashtrays
The Macarena cd
Stars in their Eyes series 2 [VHS]
Goblin Teasmade
Fiat Tipo
Electric blanket
Nokia 2210
moustache wax

Food
Tinned strawberries
1/2 a grapefruit starter
supermousse

Fuel
pink Paraffin
Charcol Brickettes

Housing
Polarisworld.com Alicante 2 bedroom apartment
Army married quarters

Prices show a constant fall since 1979. RPI/Cpi shows a slight rise of 0.2% for February due to Parafin rise, slightly offset by a fall in the cost of carbon paper.

Nick Drew said...

now we just need them to 'fess up on the crime figures and stop chanting 'Crime Is Down'

trouble is, since most (English) local authorities are Tory and they all have crime reduction targets, and since senior Policemen are all on crime-reducing bonuses,

they too all have an incentive to sign up to the manifestly false NuLab crime figures

Mark Wadsworth said...
This comment has been removed by the author.
Mark Wadsworth said...

According to The Daily Mirror, the Goblin King is about to admit that mortgage write-offs could be £295 billion.

Your version of the inflation story is correct, however it is rather bizarre that the BBC heads up their article "Cameron attacks big price rises" as if he were calling for price controls. Which I wouldn't put past him, to be honest.

Mark Wadsworth said...

That Daily Mirror link doesn't work, sorry.

Anonymous said...

It seems to be a long time since there was a new issue of Index Linked Savings Certificates available for purchase, even though the drop in the yield on Index Linked Gilts suggests that a new lower-yielding issue is overdue. Presumably the government doesn't want people who already own their maximum of the current issues buying more. That argues that the government thinks that index linked investments are attractive, because the punters think that inflation is a threat.

Nick Drew said...

BTW Mr Q that is funny

Old BE said...

The BBC reported a week or two back that memory sticks were to be added to the "basket". What did they do - find the item with the fastest-falling price to put in to flatter the figures?

Our stat-culture is not unique, the Yanks have been at it for just as long.

Anonymous said...

Inflation is even higher in the US. An insolvent bank that was worth just $2 a share to JP Morgan last week is worth $10 a share this week!

CityUnslicker said...

BQ - You would think they could just get a list from John Lewis like the MP's do eh?!!

MW - brown thinks he is showing off to Sarkozy when all he is doing is showing off his ignorance.

Dearime - saving them up for a big lot, then when the market is desperate to gobble them up the gov gets a better deal; joined up government - only when the masses are to be mugged.

Ed/RS - The US too has the same problem with its government as you say. the only time you can ever get a change is when a new government gets in power and is happy to go with bad news stories for a while. The EU is stuck with our stupid CPI too so they are in the same mess.

James Higham said...

Why haven't they then - it's their job.

CityUnslicker said...

I think they are a bit lost on the road JH!

Bill Quango MP said...

The price of stamps rises next week by .. guess how much .. 1st class 5 %
2nd class 12.5 %

Car tax that rose just last week, 4.5 - 6%
Council tax 4 - 6 % for most people.

If the government is pushing prices by these amounts, and this doesn't even touch on booze, fags and fuel/transport increases that have gone on, how can they claim 2.5 % ?

Clothing furniture and last years electronic equipment have been keeping inflation down, and are also the first non essential items to be dropped when a family budget needs trimming.

REAL inflation is surely going to get even higher over the next year.

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