UK inflation worsens.

[denso13]

I think what filly is meaning is,

June 22 to June 23 has an annual inflation rate of 10%, therefore £1000 is now £1100 (in Jun 23).
July 22 to July 23 has an annual inflation rate of 5%, therefore £1010 (1% rise in one month) is now £1060.50 (in July 23).

Ipso facto July 23 is less than June 23.

I'll get my coat...

 

[SirGalahad]

I agree, perhaps you could direct that at Carman who said:


"If something cost £100 in January.

£110 in Feb (10%)
£121 in March (10%)
£126 in april inflation has FALLEN to 5% but the price still went up"

Which I said at 10% would amount to about a 280% increase over the year, your workings look more accurate than mine.



That makes more sense than anything Carman has come up with but I'm still not totally convinced it's allowing for the fact that the inflation rate for any month for the basket of goods is based on the same cost 12 months earlier.
Assuming inflation in your example has been constant at 12% for over a year, when it reached £103 and inflation dropped to 6%,, at £103.00 the value 12 months earlier would have been 12% less, ie. £90.64, assuming approx 1% inflation per month the previous year the following month would show the value at £91.54, at 6% inflation, value following your £103 would be £97.03 based on the 12 month prior figure.

I like your graphs but to me I think the 2nd graph needs two lines, a 12 month 'previous' line shadowing the current line, wouldn't that show more of a convergence in the later stage and draw the top line down.

I do genuinely believe that if in your example inflation dropped from 12% to 6%, that would show a fall in prices, not from the previous year obviously, but for a month at least.

Thank you for taking the time to engage sensibly.

Thats wrong.

You are confusing the rate of change (inflation) with the price level.

Picture this.

You have a graph, time on the x axis (horizontal) and price level on the y axis (vertical)

Now at year 0 price is 100 and year 10 price is 150

Now that line that is drawn from 100 to 150 ebbs and flows but its general direction is up

Now picture a a rectangle that represents 12 months which you place on that line - you can measure the gradient of that line that falls within that rectangle - the gradient is the rate of inflation.

 

[fillyboy]

I think what filly is meaning is,

June 22 to June 23 has an annual inflation rate of 10%, therefore £1000 is now £1100 (in Jun 23).
July 22 to July 23 has an annual inflation rate of 5%, therefore £1010 (1% rise in one month) is now £1060.50 (in July 23).

Ipso facto July 23 is less than June 23.

I'll get my coat...

That's exactly what I said.

 

[securespark]

Wouldn't you eventually die from lack of oxygen?

Yeah. Then there will be no more inflation. At least, in your lungs anyway.

 

[fillyboy]

Thats wrong.

You are confusing the rate of change (inflation) with the price level.

Picture this.

You have a graph, time on the x axis (horizontal) and price level on the y axis (vertical)

Now at year 0 price is 100 and year 10 price is 150

Now that line that is drawn from 100 to 150 ebbs and flows but its general direction is up

Now picture a a rectangle that represents 12 months which you place on that line - you can measure the gradient of that line that falls within that rectangle - the gradient is the rate of inflation.

Exactly, there are 'ebbs' (price decreases along the way) but there is still an underlying upward trend line.

 

[SirGalahad]

That's exactly what I said.

Wrong. lol

The facts its been explained so often and you still don't get it.

Yes you can trick some of the people all of the time.

 

[SirGalahad]

Exactly, there are 'ebbs' (price decreases along the way) but there is still an underlying upward trend line.

The problem you have when it ebbs it means the rate trends down not that the rate tends to zero or below.

 

[carmanmemoranda]

Your a brave man filly doing that in here.
The day the chuckle brothers do it I think we can safely say hell will be on its way to freezing over.

If he didn't come out with posts like this it would help


Semantics on this site among the idiots is beyond ridiculous.



Now tell me who is the idiot for not grasping the basics and doubling down on it. And accusing others of throwing insults

 

[fillyboy]

If he didn't come out with posts like this it would help


Semantics on this site among the idiots is beyond ridiculous.



Now tell me who is the idiot for not grasping the basics and doubling down on it. And accusing others of throwing insults

And who is the idiot who posted an illustration showing 10% inflation would result in a 280% price increase in 12 months.

 

[mitch66]

It won't.

Not without significant deflation.

So prices won't deflate unless they deflate. Thanks for clearing that one up.

 

[gant]

If he didn't come out with posts like this it would help


Semantics on this site among the idiots is beyond ridiculous.



Now tell me who is the idiot for not grasping the basics and doubling down on it. And accusing others of throwing insults

Something you've never been guilty of?

 

[carmanmemoranda]

And who is the idiot who posted an illustration showing 10% inflation would result in a 280% price increase in 12 months.

Nobody did that. They posted a quick example to show the point and you still don't understand it.

Schoolboy level stuff and you call me an idiot.

Grow up

 

[Brigadier]

So prices won't deflate unless they deflate. Thanks for clearing that one up.

You might have "got it".

Have a word with filly then, see if you can get it through to him

 

[carmanmemoranda]

Something you've never been guilty of?

If you or him want to call me an idiot, at least get your facts right.

Filly called me an idiot, but it was him that was wrong all along

 

[gant]

Farage thread ?