How Is The Rate Of Inflation Worked Out...?

If Gordon Brown%26#039;s saying the rate of inflation is currently running at 2.1 percent, but food prices, fuel and energy bills are rising by around 17-20 percent, how is the official figure arrived at? Surely that is manipulating the figures, isn%26#039;t it? Or have I missed something? How is the inflation rate calculated?

How Is The Rate Of Inflation Worked Out...?

According to this site...its worked out using what they call 閳ユedonistic pricing閳?which is a very complex range of calculations and equations. In fact it閳ユ獨 so complex that nobody can actually work it out which most probably is the whole point....

http://www.investorprofit.com/banking/ba...

How Is The Rate Of Inflation Worked Out...?

Good question, something i cant answer but agree that it doesnt seem logical.

How Is The Rate Of Inflation Worked Out...?

Seems like it%26#039;s based on jelly babies to me.

Or maybe they just think we%26#039;re that thick!

How Is The Rate Of Inflation Worked Out...?

In America, chief government economists hold monthly meetings at the White House They gather 閳ユΜound a big table stocked with plenty of booze, lots of really strong dope, and some cocaine to keep the lies flowing.

How Is The Rate Of Inflation Worked Out...?

Not sure about how they figure it but food is included in it. As for automobile gas fuel it%26#039;s not included they say its not a necessity. Not sure what heat/energy is considered.

How Is The Rate Of Inflation Worked Out...?

Current Average Price level minus last year%26#039;s CAP level divided by last year%26#039;s CAP level multiplied by 100 will equal the Rate of Inflation.

You take the rate of increase in consumer price index along with the rate of decrease in purchasing power and you will be able to calculate the real interest rate which runs close to the rate of inflation

Or, go down to Walmart , see if you can still buy 5 snickers candy bars for the price of 3.

If you can%26#039;t, the inflation rate is running at about 16%.

How Is The Rate Of Inflation Worked Out...?

If they do it the same way as they do in the USA, they don%26#039;t include energy prices or food prices in the inflation index so as to make it look like everything is going just fine and dandy.

I don%26#039;t know how they do it in the UK, but that is how it%26#039;s done in the USA.

How Is The Rate Of Inflation Worked Out...?

i would imagine the same way governments work out anything.pure guess work, and lets face it they haven%26#039;t got anything right have they, pensions, the amount of immigrants, the cost of the Olympics, so no wonder the rate they quote is farcical to the point of disbelief.

How Is The Rate Of Inflation Worked Out...?

Karen is right about %26#039;hedonistic pricing%26#039; - here is a bit more about it

The powers that be are given enough subjective input to get whatever answer they want.

Like the old soviet union - the government lie, we know that they lie, they know that we know that they lie but they don%26#039;t care because we let them (the worst they get is a slagging off on Y!A which they probably dont read anyway).