Inflation

Hamish · 10 Sep 2009 at 11:32

Hi,

i'm trying to work out the inflation rate between June 2008 and now. I've had a look on a few sites but there seem to be lots of rates for differnt rates and different ways of calculating it e.g. CPI, RPI etc.

Basically all I want to know is if I was earning £x in June 2008 how much would I have to be earning now for it to be the same.

Thanks,
Hamish

dirtydog · 10 Sep 2009 at 11:36

Just pick the highest figure? It isn't an exact science.

scorza · 10 Sep 2009 at 11:44

Main difference between CPI and RPI is that RPI includes mortgage payments (hence why RPI went negative due to the cut in interest rates). There's also RPIX which is the RPI figure excluding mortgages. The government prefer the to use the CPI for determining what interest rates should as it's generally stabler than RPI and less affected by changes to interest rates.

Energize · 10 Sep 2009 at 12:00

Personally I use RPIX, the RPI includes mortgage interest which skews it and the CPI just never seems to be in the real world (which is probably why the government quote it).

Dolph · 10 Sep 2009 at 12:00

dirtydog said:
Just pick the highest figure? It isn't an exact science.

Statistical genius there... Ignore how the figure is calculated and pick an arbitary one.

Scorza has covered the main differences between the two. Generally CPI or RPIX is the most useful, because interest rate changes are used to help influence CPI inflation but have a much more dramatic effect on RPI.

dirtydog · 10 Sep 2009 at 12:02

Dolph said:
Statistical genius there... Ignore how the figure is calculated and pick an arbitary one.

Scorza has covered the main differences between the two. Generally CPI or RPIX is the most useful, because interest rate changes are used to help influence CPI inflation but have a much more dramatic effect on RPI.

Arbitary? Do you mean arbitrary? Did you enjoy having your dig?

I am well aware of how the various figures are calculated, but to know exactly what you need to be earning now, to be the same as in June 2008 is not an exact science which is all I said.

Yamahahahahaha · 10 Sep 2009 at 12:11

http://www.statistics.gov.uk/cci/nugget.asp?ID=19