UK inflation worsens.

[fillyboy]

Diesel was around 1.90 last july its now 1,40 so yes certain items in the basket that they use to calculate inflation do actually fall in real price and not increase at the lower inflation rate

I'm referring to the cost of 'the basket of goods' used to calculate CPI.

 

[carmanmemoranda]

Diesel was around 1.90 last july its now 1,40 so yes certain items in the basket that they use to calculate inflation do actually fall in real price and not increase at the lower inflation rate

Correct. But it is the full basket of goods used for an overall figure, not just cherry picking 1 item.

The other point is that if 1 price has fallen dramatically, but the overall rate still went up, then the rest of the basket must have increased by a substantial amount.

I'm still not sure why filly is struggling with schoolboy economics. It's not even the complicated stuff

 

[carmanmemoranda]

Semantics on this site among the idiots is beyond ridiculous.

If inflation falls, prices are lower than the preceding month, which is a good thing. The rate of inflation is measured against prices 12 months earlier, so in short, prices are lower (or should be subject to retailers or forecourts passing on the savings) than the previous month but still higher that the same month 12 months prior to that.

Howling at the moon and screaming brexit won't alter that fact.

There's fillys claim. Exactly as he said it

 

[carmanmemoranda]

PMSL.

If in June 2023, inflation is 9%, prices are 9% higher than June 2022, that represents the inflation. If in July 2023, prices are 8% higher than July 2022 that reflects annual inflation and the prices for July are cheaper than June, that represents a fall in prices.
Not on the year before but on a monthly basis. Anyway, crack on, looking forward to a non answer.

Part 2 of his claim, doubling down

 

[gas112]

edit

 

[fillyboy]

Correct. But it is the full basket of goods used for an overall figure, not just cherry picking 1 item.

The other point is that if 1 price has fallen dramatically, but the overall rate still went up, then the rest of the basket must have increased by a substantial amount.

I'm still not sure why filly is struggling with schoolboy economics. It's not even the complicated stuff

So answer the same question I asked windy.

Yes, falling inflation means prices are still higher than the year before. CPI measure inflation is based on a bunch of goods and their cost 12 months previous.
My point was that if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022.

Are the cost of those same goods in July 2023 more expensive or less expensive than in June 2023?

 

[carmanmemoranda]

So answer the same question I asked windy.

Yes, falling inflation means prices are still higher than the year before. CPI measure inflation is based on a bunch of goods and their cost 12 months previous.
My point was that if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022.

Are the cost of those same goods in July 2023 more expensive or less expensive than in June 2023?

Once you acknowledge what you wrote and doubled down on I will look at more of what you post about inflation. I'm not discussing economics with somebody who clearly doesn't understand it

You made yourself a laughing stock with the failure to understand schoolboy economics and told me I didn't understand it.

When you get to adult level of the basics we can go further.

If you are in any doubt, look st your 2 quotes re posted above. If that what you wrote? Not edited by me or anyone?

 

[securespark]

I added the word test to my last post and it shows up as an 'edit'. You quickly edited your last post but it doesn't show up as an edit, much like JohnD and Denso. I guess you're all moderators, makes sense.

You can edit your post for up to just under 5 minutes without it showing as an edit. Unless someone else posts after yours, in which case it will show as edited straight away.

Edited by me to prove a point.

 

[carmanmemoranda]

Filly did you or did you not say



If in July 2023, prices are 8% higher than July 2022 that reflects annual inflation and the prices for July are cheaper than June, that represents a fall in prices


Prices in July cheaper than June?

 

[carmanmemoranda]

If something cost £121 in march based on inflation of 10%, that inflation figure is based on the price in 2022, which would mean those goods cost £108.90 in 2022

If in April 2023 the inflation has dropped to 5%, the price would be £114.35 in 2023

The inflation is based on the price 12 months earlier, not the month before.

£114.35 is a reduction or price drop on £121.00 over 1 month

In your quote, how can the april price be lower than the march price if inflation has fallen, given both are measured on figures 12 months earlier?

test

Another 1 for you to explain filly.

Did you or did you not say that? Not edited by you, me or anyybody

 

[fillyboy]

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

I don't think I can put it any simpler than that

Or more wrongly. Since when has inflation been applied month on month, the rate of inflation is based on annual costs.
In your example above, surely if inflation were rising 10% per month, something costing £100 in January would cost £285 by december.

 

[carmanmemoranda]

Or more wrongly. Since when has inflation been applied month on month, the rate of inflation is based on annual costs.
In your example above, surely if inflation were rising 10% per month, something costing £100 in January would cost £285 by december.

Stop digging your hole deeper. Edit, that was a very simple example to try to explain inflation to you, and you still don't understand it

Every post you make makes it worse.

Do you not understand the basics of, inflation can fall but prices still rise, not fall ?

 

[fillyboy]

Stop digging your hole deeper. Edit, that was a very simple example to try to explain inflation to you, and you still don't understand it

Every post you make makes it worse.

Do you not understand the basics of, inflation can fall but prices still rise, not fall ?

You're digging your own hole now, compound monthly inflation?

Prices can never fall?

 

[fillyboy]

So answer the same question I asked windy.

Yes, falling inflation means prices are still higher than the year before. CPI measure inflation is based on a bunch of goods and their cost 12 months previous.
My point was that if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022.

Are the cost of those same goods in July 2023 more expensive or less expensive than in June 2023?

 

[carmanmemoranda]

You're digging your own hole now, compound monthly inflation?

Prices can never fall?

Do you need another spade yet? Give up