Comments on: Difference Between RPI, RPIX and CPI http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: mike jones http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-5667 mike jones Fri, 05 Mar 2010 04:40:03 +0000 http://www.economicshelp.org/blog/?p=1338#comment-5667 Index linked government savings is based on RPI rather than CPI. As deflation has bottomed out it would seem a better time to invest in the current 3 or 5 year NSI certificates which pay 1% a year over the RPI index, tax free. Assuming 3% inflation for the next 12 months the rate of 4% tax free is far better than any cash ISA. Naturally one is speculating on the inflation figures, but the certificates do not take deflation into account , so you cant get less than you put in. Index linked government savings is based on RPI rather than CPI. As deflation has bottomed out it would seem a better time to invest in the current 3 or 5 year NSI certificates which pay 1% a year over the RPI index, tax free.
Assuming 3% inflation for the next 12 months the rate of 4% tax free is far better than any cash ISA.
Naturally one is speculating on the inflation figures, but the certificates do not take deflation into account , so you cant get less than you put in.

]]> By: Pat Magroin http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-5568 Pat Magroin Tue, 23 Feb 2010 09:42:43 +0000 http://www.economicshelp.org/blog/?p=1338#comment-5568 this is cool man. really helped me on my economics schoolwork. thanks :) Pat this is cool man.
really helped me on my economics schoolwork.
thanks :)

Pat

]]> By: Tom MacNeece http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-4802 Tom MacNeece Thu, 29 Oct 2009 17:42:06 +0000 http://www.economicshelp.org/blog/?p=1338#comment-4802 Intereting that the RPIX is now higher than than CPI for the first time since December, before mortages rates plunged in line with the falling bank rate - at least that is how I read it. RPIX, shown in a graph alongside CPI, provides a very useful guide. Add on the impact of an end to VAT soon and rising import prices reflecting the fall by 20% in the value of sterling over the past two years, and one gets a disturbing picture. Go on google to "Bank of England - Pension Fund", and one can see why the bulk of the ibvestments are in index linked gilts. Where does that leave house prices? That must be something that should worry Mervyn King; some nortgages will become subprime. Then there is subprime Mark 2, companies bought by private equity companies relying on huge leverage, leading to interest payments that can'tt be met out of income. Intereting that the RPIX is now higher than than CPI for the first time since December, before mortages rates plunged in line with the falling bank rate – at least that is how I read it. RPIX, shown in a graph alongside CPI, provides a very useful guide. Add on the impact of an end to VAT soon and rising import prices reflecting the fall by 20% in the value of sterling over the past two years, and one gets a disturbing picture. Go on google to “Bank of England – Pension Fund”, and one can see why the bulk of the ibvestments are in index linked gilts. Where does that leave house prices? That must be something that should worry Mervyn King; some nortgages will become subprime. Then there is subprime Mark 2, companies bought by private equity companies relying on huge leverage, leading to interest payments that can’tt be met out of income.

]]> By: anon http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-4044 anon Tue, 18 Aug 2009 21:33:37 +0000 http://www.economicshelp.org/blog/?p=1338#comment-4044 Thank you for the concise description, very handy and helpful. Thank you for the concise description, very handy and helpful.

]]> By: gary lammert http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-2714 gary lammert Sat, 21 Feb 2009 21:55:48 +0000 http://www.economicshelp.org/blog/?p=1338#comment-2714 Qualitatively, think and reckon 5 years in the future with UK's housing bubble unwinding. And the days of exporting of financial innovations and North Sea oil are over. Britain deserves leaders who understand how the macroeconomic system works. Hopefully Britain will find some. Qualitatively, think and reckon 5 years in the future with UK’s housing bubble unwinding.
And the days of exporting of financial innovations and North Sea oil are over. Britain deserves leaders who understand how the macroeconomic system works. Hopefully Britain will find some.

]]> By: Sarah http://www.economicshelp.org/blog/inflation/difference-between-rpi-rpix-and-cpi/comment-page-1/#comment-2682 Sarah Wed, 18 Feb 2009 15:05:20 +0000 http://www.economicshelp.org/blog/?p=1338#comment-2682 Would it be wise for a pension fund to invest in the equities of a house builder given the current economic situation surrounding the housing/mortgage industry? Would it be wise for a pension fund to invest in the equities of a house builder given the current economic situation surrounding the housing/mortgage industry?

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