Saturday, August 23, 2014

No - Magnum PI is a TV programme!

What's the current rate of inflation?  Should be a straightforward question with a definitive answer, yes?  But no - it depends on which measure of inflation you are using.  There are two - RPI (Retail Price Index) and CPI (Consumer Price Index).  I don't pretend to understand the nuances, but RPI tends to be a higher figure than CPI.  So the sneaky thing is that the Government choose which index suits them best in the circumstances.  When it comes to increases in the state pension, for example, they use CPI, 'cause that's generally lower, but when it come to increasing the price of rail fares, they use RPI, 'cause that's generally higher.  I think it's called having it both ways!

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