Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Consumers reveal the truth about UK Inflation

ConsumerWatch / UK Economy Mar 27, 2007 - 04:38 PM GMT

By: Fool.co.uk

ConsumerWatch

The Government grossly underestimates inflation figures according to new findings of an online survey* by independent personal finance website Fool.co.uk

Consumers say inflation is 7.4% not 2.7%

  • Inflation hurts older people most
  • Men and women feel the affects of inflation differently
  • Yorkshire experiences the lowest rate of inflation

According to almost 1,500 Fool.co.uk readers, the Government's inflation figures are wrong. An overwhelming 90% of people believe that inflation in the UK is running at well above the Government's figure of 2.7%. On average consumers reckon that a more realistic figure for annual inflation is 7.4%.

Over two-thirds of respondents said that in their estimation, the true rate of inflation is in the region of 4% to 9%. Worryingly, 1 in 4 people said their household inflation is more likely to be 10% to 15%!

The survey also showed a small, but nevertheless significant, gender divide on how inflation affected households. In the main, women felt that household inflation is running at 7.9%. However, men reckon that the rise in the cost of living is around 7.1%.

Inflation affects people of varying ages differently. The youngest group of respondents, those aged between 18 and 25 years, said inflation is 5.9%. However, older respondents claim inflation is much worse. For 26 to 33 year-olds inflation is 6.8%, and for 31 to 41 year-olds it is 7.4%. Anyone older than 42 feels the impact of inflation at a slightly higher rate of 7.6%.

Across the UK, average household inflation was found to be tightly clustered around 7.4%**. However, households in Northern Ireland and East of England revealed that inflation is around 7.7%. Yorkshire fared best though. It was the only region in the survey that felt inflation is below 7%.

David Kuo, Head of Personal Finance at Fool.co.uk comments: “Our survey on the impact of inflation on households across the UK confirms what many consumers already know – that the cost of living is rising faster than the Government admits.

“What's more, 1 in 4 people think that inflation is as high as 10% to 15%. This suggests that the Government's inflation figures are at best questionable, and at worst downright deceptive.

“When assessing their own finances, consumers simply want to know whether their monthly paycheck buys as much today as it did a year ago – and our survey reveals it doesn't!”

“The most worrying finding was the level of inflation felt by the oldest group of people. This group represents some of the most vulnerable people in society, who may have given up work, and rely on accurate Government figures to ensure that their pensions keep pace with inflation. It seems they may have been badly let down!”

David adds: “If you are a mortgage-paying, university-fee paying, council-tax paying, congesting charge-paying car driver, then be aware that your pay rise will probably not cover the rise in your monthly outgoings.

“However, if you are a chicken-kiev-munching, MP3-downloading, flat-panel TV-watching, cheap-champagne-guzzling consumer who buys orange juice by the multi-pack, then perhaps the Government's inflation figures may be of some benefit to you.”

By Sonia Rehill
soniar@fool.co.uk
http://www.fool.co.uk


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules