Inflation

Nov 27, 2006 10 Replies

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


offered last

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.

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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.

offered last

packet of 10

volume to (say

packet, or

more" offer for

get based

few examples

You might find the answer in the essay "Phyletic Size Decrease in Hershey Bars" by Stephen Jay Gould.

Toom

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.

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 | |

offered last

packet of 10

volume to (say

packet, or

more" offer for

get based

few examples

See

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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

offered last

of 10

(say

packet, or

offer for

per

based

Yes, basically. For a full explanation see:

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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.

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.

They just average out the lottery results on a monthly basis ;)

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

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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