CPI Crash and Pension link

[Late & Tired]

Latest UK CPI rate for August 2020 (released today, 16 September), gives a significant drop to 0.2%, from the July figure of 1.0%.
Worth keeping an eye on the September figure (released in October), as this is the figure which is [currently] used for the following year's Pension increase.
Here's hoping there's something in the pot for 'us oldies' next year, - although I fear it could be worse to come...

 

[busby1971]

Blaming it on the eat out deals, quite a few places have kept their deals going so could be interesting

 

[Tin basher]

Check here when Oct comes around

UK Historical Inflation Rates - 1988 to 2024

Historical inflation rates from 1989 to 2024 for United Kingdom.

www.rateinflation.com

Hopefully a spike in the rate will help us oldies with next April's pension

 

[busby1971]

That 2011 one did me proud

 

[Cornish_Pikey]

Blaming it on the eat out deals, quite a few places have kept their deals going so could be interesting

How did that affect the prices, it's a consumer PRICE index. I don't believe the prices changed, only that the government was picking up half the tab (up to a tenner). Manipulation of statistics at it's finest there.

 

[busby1971]

If you trust the BBC here’s a link

Eat Out to Help Out drives UK inflation to five-year low https://www.bbc.co.uk/news/uk-54173658

The fall to 0.2% is overwhelmingly the result of the impact of Eat Out to Help Out and the temporary VAT cut for the hospitality sector.

 

[Late & Tired]

Being a crusty old Vet, in receipt of the pension, the subject does interest me. Being a Yorkshireman to boot helps too. Ever since the Govt swapped the Pension from RPI to CPI, we have been on the lower rate, and there was mention at one stage of the revised CPI(H) rate being used. Currently, that may have aided us this year. Either Oct 2020 figure for September will buck the trend and see an increase, or stagnate, or worse, reduce further. Bah humbug (or is that too early...?)

 

[Mug?]

It is a little bonkers I find myself wanting prices to shoot up so whenever I get to the point that the rises are added I feel better off, ignoring the fact that by wishing for higher prices only mean what I get now is worth less ha ha.

 

[Late & Tired]

Released today, 21 October, - September CPI Rate at 0.5%.
Better than last month's rate, but possibly low over the coming months.
0.5% SHOULD be the increase rate for April 2021; but, in this climate, let's wait and see...

 

[GOV1]

Without sounding like “pissing on your chips”, according to the official ONS site it’s 0.7%.
The BBC are stating 0.5%

I am sure Vauxhall will piss on my chips if I’m wrong.

 

[Late & Tired]

Without sounding like “pissing on your chips”, according to the official ONS site it’s 0.7%.
The BBC are stating 0.5%

I am sure Vauxhall will piss on my chips if I’m wrong.

I hope you're right, I'm happy to be corrected if I interpreted it wrong.
As the saying goes, "every little helps..."

 

[Tin basher]

Whether it's 0.7 or 0.5 its a rise and a welcome addition to my monthly bank account income.

 

[Late & Tired]

Hope this linky thing works (Pg1, scroll down, Pt1 last bullet point)
https://www.ons.gov.uk/economy/infl...ulletins/consumerpriceinflation/september2020

 

[Vauxhall]

Without sounding like “pissing on your chips”, according to the official ONS site it’s 0.7%.
The BBC are stating 0.5%

I am sure Vauxhall will piss on my chips if I’m wrong.

Without sounding like “pissing on your chips”, according to the official ONS site it’s 0.7%.
The BBC are stating 0.5%

I am sure Vauxhall will piss on my chips if I’m wrong.

Sorry, I'm going to disappoint. The CPI rate is 0.5%. It is the CPIH rate which is 0.7%. It is the CPI rate which will apply to pension increases.

 

[GOV1]

Thanks Vauxhall, my chips are well and truly pissed on!

Seriously though, thanks for all your advice now, in the past and in the future.

 

[Late & Tired]

Thanks Vauxhall, my chips are well and truly pissed on!

Seriously though, thanks for all your advice now, in the past and in the future.

I did read the CPI(H) being at 0.7, but that's the (relatively new) CPI(Home) value which is an additional one to both CPI and RPI. We used to use RPI, but that was changed to CPI, - and there was even talk at one stage of using CPI(H) for our pension link, rather than CPI; - that of course was when CPI(H), was lower than CPI...
Clear as mud.

 

[busby1971]

Governments preferred measure for payments is always the lowest.

Just as its preferred measure for increases tends to be the highest.

 

[Mug?]

So both 0.5 and 1.1 go on my tracker. Another big difference between what I'll get since the RPI/CPI change. Although I'd put 2 in as part of my random predictions. Not bitter.

 

[AED24]

Check here when Oct comes around

UK Historical Inflation Rates - 1988 to 2024

Historical inflation rates from 1989 to 2024 for United Kingdom.

www.rateinflation.com

Hopefully a spike in the rate will help us oldies with next April's pension

So, 0.6% then, not as good as recent years, but not as bad as 2015 - could have been worse and every bit helps us older folks to maintain a reasonable lifestyle.

 

[Late & Tired]

So, 0.6% then, not as good as recent years, but not as bad as 2015 - could have been worse and every bit helps us older folks to maintain a reasonable lifestyle.

Please be aware that your quoted figure of 0.6% relates to the rate of inflation, - and NOT the CPI value of 0.5% given earlier, which is the September 2020 figure used for the 2021 variance in April onwards.