What? They include food costs in their calculations? It seems unlikely. Does anyone know if they use the same lies and trickery as the US?
When this type of news is reported, the time period is never stated clearly. 2.7 percent jump from Sept to Oct OR 2.7 percent since the beginning of the year?
Would someone please clearify this for me
Good question. I often wonder the same about Australian inflation figures. One day I might actually investigate exactly how they come to their figures.
Silver Bullet, the UK copies everything the US and Japanese central banks do.
To understand how inflation is wrongly calculated see Dr Chris Martenson’s Cash Course Ch. 16 Fuzzy Numbers http://www.youtube.com/watch?v=zPkTItOXuN0
Actually, this UK inflation index is known as the CPI. It’s supposed to stand for Consumer Price Index but most people who have ever looked into it refer to it as the Chinese Price index as a reflection on it’s relevance to UK consumer prices.
They don’t include fuel and food but raises in food and fuel affect things that are counted. It’s basically a massively massaged number to hide the fact that the UK is in a slide into depression.
It’s also a handy way to make savings for the government. The state pension is fixed to the CPI and the privatised cartel that controls gas prices (Which is not in the index) means that they can cheat little old ladies by confiscating their buying power. The rigged gas prices then mean that a few thousand of them freeze to death every winter giving further savings.
TIP: Price the UK stock market using Gold, silver or even refined fuels since the year 2000. Each chart shows a relentless deflationary depression. Having done that, now price the stock market in housing cost as in value of residential property and rents and you will see that it’s more of a flat line. Why doesn’t that show a deflationary depression as well? Because it hasn’t corrected yet and the values are rigged by monetary policy.
At some point in the not too distant future, the UST bond bubble will blow (as predicted by Max Keiser). When that happens the contagion will hit UK gilts. Then there will be no choice but to raise interest rates. Then the housing market corrects. Then everyone will know that they are in a deflationary depression kept hidden for years by the greatest act of fait paper illusion ever staged.
At this point lots of parents won’t be able to properly feed their kids and the government can use the birth certificate that the mother signed to take the kids. (They are a state assets under contract law). Of course, there’s nothing for parents to worry about as we all know that top politicians, judges, senior policemen and all sorts of various people who are lords and the such as models of integrity and honour and wouldn’t dream of having a bit of sexy fun with their kiddie harems.