It is Obvious

Chris Rick has got altogether too much to say

Hope I die before I get old – Pete Townsend

Posted by chrisrick13 on April 16, 2013

It is obvious: I can do better

The inflation rate (CPI) for the last year was 2.8%.  I live somewhere, as do most people in this country, so I’ll go with RPI inflation which includes housing costs and has inflation at 3.4%.  I could go with some other views of inflation with a better provenance which have it at 5.2% but I’ll stay with RPI.

Wage inflation over the same period was 1.2%.  This means that we are well placed in the race to the bottom.  Every 35 years our wages will buy half of what they bought before.  Wonder what that will do to house prices?

I have not found an ISA that pays 3.4% so it is not possible to insulate even a small part of any savings I have made against inflation.

I wonder if the Bank of England have thought of swapping their inflation numbers with the GDP growth numbers?  Probably nobody would notice.  A bit radical I know, but they could try policies that would get that effect as the ones they are pursuing have done the opposite of what they want.  Why not increase interest rates and suck back QE money?  Cannot be worse than what they is happening now.

It is obvious: I can do better – difficult to do worse


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: