http://www.bbc.co.uk/news/business-22605884

I’ve just recieved my gas and electricity bill, ouch!
I don’t believe that it’s fallen at all.

The amercians are now just considering allowing exports of shale gas LPG, which they have so far held back due to wanting to give their home grown industries a low energy competitive advantage. If they do start exporting (the US is now energy self sufficient) then gas wholesale prices should come down.

When inflation “falls”, surely that means that the rate at which the price of things is increasing drops, not their actual price?

I’ve just recieved my gas and electricity bill, ouch!
I don’t believe that it’s fallen at all.

Electricity prices are only part of the RPI calculation. And…

When inflation “falls”, surely that means that the rate at which the price of things is increasing drops, not their actual price?

So, lower inflation just shows that things are getting more expensive at a slower rate.

Are domestic energy bills included in inflation figures? I seem to recall them being taken out of the calculations when they were really shooting up, but they might have been put back in now.

So does this mean a fall in inflation is significant?

http://www.bbc.co.uk/news/business-22523612

any movement in inflation is noteworthy..
judging inflation by your gas bill though isnt the most reliable measure.. your gas useage has increased by about 16% this winter so you may not be comparing like with like.

I remember those heady days of double figure inflation.

I remember those heady days of double figure inflation.

Which just goes to prove that low inflation is not the economic panacea that right-wingers have always claimed it is. Unless of course you believe everything is hunky dory with the UK economy.

So how does it relate to the Cost Of Living?

Inflation is falling! Perfect timing; now Carney can come straight in and fire up the presses again!

Tyger, you work for the ONS and I claim my £5!

House prices are up 9% or thereabouts but that doesn’t count as inflation, or rising energy prices, or rising tax bills, or… .

House prices are up 9% or thereabouts but that doesn’t count as inflation, or rising energy prices, or rising tax bills, or… .

You mean to say you dont eat ipods for breakfast lunch and dinner, fuel your car with mp3s or heat your house with LCD TVs?

I remember those heady days of double figure inflation.

Which just goes to prove that low inflation is not the economic panacea that right-wingers have always claimed it is. Unless of course you believe everything is hunky dory with the UK economy.

How does that work then?

inflation at 10% wage rise at 15% you feel better off.
inflation at 2% wage rise at 1% you feel worse off.

Inflation is only part of the picture for most peoples lifestyles.

surfer – Member
How does that work then?

Good question – looks like a non-sequitor followed by a non-point?

Inflation is one of several key macro-economic goal targeted by all parties. The extent to which it matters/causes problems, depends on the extent of the increase in absolute terms, against expectations (in this case below) and against trends experienced in other countries.

Lower inflation is indeed a lower rate of increase. A fall in absolute prices is deflation (or negative inflation). I am confident that politicians who hold offices of state are briefed sufficiently in economics to understand that extremes of inflation and deflation are both to be avoided. Nothing to do with panacea’s or political persuasions IMHO.

In the short term, the “benefit debate” will probably be driven by whether individuals or companies benefit from a stronger or weaker currency. Those in the latter camp will feel happier today than those in the former.

But I take the OP’s point – most of the things I seem to spend most of my money on seem to be rising at more than the headline rate of inflation – take MTB stuff for starters!! 😉

They’re printing money to keep inflation low. The whole system is being propped up artificially.

So how does that work JCL?