Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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