Inflation

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.

Reply to
Ret.
Loading thread data ...

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.

Reply to
Andy Pandy

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%.

Reply to
Jonathan Bryce

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.

Reply to
Andy Lord

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.

Reply to
M Holmes

These do one:

formatting link
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.

Reply to
Andy Pandy

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.

Reply to
Ret.

Public sector wages are low, pensions are good.

Reply to
Noon

Depends upon what public sector you work in!!

Ret.

Reply to
Ret.

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.

Reply to
Mark

"Noon" wrote

But pensions are just delayed wages - so what now, are the wages (overall) low or good? ;-)

Reply to
Tim

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.

Reply to
Ret.

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

Reply to
Simon

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

Reply to
Simon

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.

Reply to
ceres

Fair points - but the rise is more than most workers will be getting - and they are facing the same costs.

Ret.

Reply to
Ret.

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

Reply to
Mark

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

Reply to
Mark

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

Reply to
Simon

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.

Reply to
Simon

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.