Lies, Damn Lies and Statistics...("And the band played believe it if you like...")

Hi All

Puts on Victor Meldrew head...

Its official; the cost of living in the UK moved scarcely a whisker last year.

You will be pleased to know that it costs no more to live in the UK now than it did one year ago...

I've just had notification from the paymaster at my smallest pension provider that my Monthly pension payment from them for the forthcoming year.................. is wait for it...................................................Twenty Six Pence..............!

Current Monthly Pension £184.10.......... Revised Amount £184.36........Increase  £0.26 per month.............Based on an RPI of 0.14%

To quote Victor; "I don't belieeeeve it"

Does anyone?

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Looks like it's the roundabouts for you to make up the shortfall!!!

Irene

Spain became the first euro zone country to move into deflation when its year on year Consumer Price Index figures showed a fall in March.  So prices were actually lower in March 2009 than they were in March 2008.  So think yourself lucky that you got an increase.  Don't know if there's anything in your pension contract (or, more importantly, mine) that says that if inflation is negative the pension will be reduced accordingly 

The UK Government Office of National Statistics produces two sets of figures when referring to Inflation.

One is RPI and is used almost exclusively to calculate Pay awards and Pensions increases and due to its structure bears little or no resemblance to reality when it comes to the actual overall cost of living.

The Other is CPI and is more representative of reality.

Looking at figures produced by the government for March 2009 RPI is shown to be below 0% (actually -0.4%) whereas CPI is shown as +3.2%.

Given the UK's adeptness at manipulating statistics it is quite possible that even these figures are fudged to some extent given that the ONS is a part of the UK Government...

Despite this however on March 31 the Senior Salaries Review Body recommended that MPs' pay increase in April from £63,291 to £64,766, an increase of 2.33%.

What price then RPI?

As always one rule for them another for the rest of us.

Of course if things get a little tough they always have their Expense accounts to fall back on;

Need a new kitchen (Tony Blair and Gordon Brown)...charge it...

Need a new can-opener or 40" plasma TV or a porno video or three (Jacqui Smith)...charge it...

Need £116,000 expenses for your Sisters house (Jacqui Smith...again)...charge it...

The list just goes on and on...link

The government cites the weak pound and hence the exchange rate as one of the factors affecting RPI/CPI and yet totally ignores the impact of this on the living standards of the many who are directly affected.

As I have ranted before the continued mishandling of the economy first by Tony and now by Gordon and this bunch of freeloaders has led to a real fall in the standard of living for the likes of people like me and the other UK pensioners who saw the light and got the hell out whilst they could, but who now find themselves between a rock and a hardplace having taken an effective 30% drop in income in the short space of six months...

I consider myself lucky to some extent that even with the £ at near equality with the Euro we can manage, but I sure as hell didn't work for fifty years so that some tin-pot fascist dictator can do as he pleases, playing the fiddle whilst Rome burns to the ground...

I am really curious to see what Alistair Darling has concocted for the 2009 budget or should that be fudge-it?

I make no apology for reviving this video recorded just prior to the G20 talk

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Pension increases are pegged to the inflation rate as at September of the previous year so this years increases reflect the high rate of inflation in September 2008.  Hence the 10 quid rise in the state retirement pension and my, not unwelcome, 5% Forces pension increase.  This high rate of inflation was mainly caused by the high fuel costs then which had a knock on effect for food prices being transported and a shortage of flour, rice and other staples.  The lower inflation rate since then is mainly due to fuel prices coming down. 

Private pensioners may not be so lucky as increases depend on when you retired. I notice one letter in the papers today refers to a 0.6% increase with the warning that the pension may not increase at all next year if deflation or stagnation sets in.

All swings and roundabouts, of course.  September this year may have a 0% increase in the RPI but next March it could go to 10% or more.  The pension increase in April would be zero if that happened.