Perfect that's what I'm looking for... interesting to note that as per the OP:The charts here have that detail.
Medical inflation is a problem everywhere. Of course doctors would never engage in price fixing, certainly not Hospital Consultants but GP's do have meetings to discuss, eeh, clinical issues within their areas. By sheer coincidence prices for all the GP's in that area may go up shortly afterwards.Perfect that's what I'm looking for... interesting to note that as per the OP:
Health increased primarily due to a rise in the cost of dental and medical services. This increase was partially offset by lower prices for pharmaceutical products.
Restaurants & Hotels rose mainly due to higher prices for alcoholic drinks and food consumed in licensed premises, restaurants, cafes etc. This increase was partially offset by lower prices for hotel accommodation.
Is this what you are looking for?
It is through using debt that capital is accumulated nowadays.Eventually price takes get to be price setters when they go on strike or labour shortages increase prices.
Periods of high inflation are, in the medium term, great for working people as they erode the real value of debt. They also increase the value of labour.
Labour inflation is way behind capital inflation (stock markets, houses etc) so in real terms the value of labour is reducing. This is a good paper on the subject. Looking at tax takes or labour price inflation in isolation is meaningless. We are creating a Capital Owning class in this country which will be just as embedded as the old Anglo-Irish landlords. That infamous leftie Michael McDowell was writing about it in the IT the other day. Apparently even the wee man in the Park was breathlessly pontificating about it on the Late Late recently.
Do falling interest rates make money more or less valuable.interest rates, that determine the value of money, have been falling since 2008, from 4.75% to 0%.
falling interest rates make existing bonds more valuable so they go up in value relative to newly issued ones because older ones now pay a higher interest rate. Thats the real reason why interest rates have been driven negative to keep the biggest financial asset of all the bond markets on side. The bond markets dwarf the size of the equity and the real estate markets and are the means by which the worlds governments are paying for the pandemic. We saw what happened in 2008 when the bond markets turned up their noses at italian, greek and irish bonds.Do falling interest rates make money more or less valuable.
€1m in capital obviously generates more income if interest rates are higher.
My major issue is the price of tinfoil hats is not included in the statistics. There's obviously a demand for those...Therefore no matter what "real inflation" is running at official inflation will remain low because they cannot raise interest rates.
Not true.The bond markets dwarf the size of the equity and the real estate markets and are the means by which the worlds governments are paying for the pandemic.
There was a claim there's there's fooling around with the numbers to suit the desired outcome. And that the data on what's included isn't readily accessible. That was what I was specifically responding to
If you think the removal of camcorders and getting photo film developed in 2016 was purposefully done because those items were getting too expensive, t
thanks for that yes, there is some detail there now but it takes a bit of searching however I did notice one thing that is a big factor the weighting of sectors that were closed down has been reduced in 2021. Therefore the big expenditure items like fuel , motor cars, licensed premises entertainment were reduced down in 2021 considerably. Of course that is legitimate however that means that inflation is low because spending is low but any discretionary spending that people are "allowed" to do is increasing in price.All of the methodological documents, including a list of the items, and their weights since the index was rebased are detailed here:
What exactly are you not able to find there which would better inform you about how CPI is calculated?
Eventually price takes get to be price setters when they go on strike or labour shortages increase prices.
Periods of high inflation are, in the medium term, great for working people as they erode the real value of debt. They also increase the value of labour.
Periods of high inflation are, in the medium term, great for working people as they erode the real value of debt. They also increase the value of labour.
This is a good paper on the subject.
If I'm paying back a €400k mortgage and inflation is running at 5% then the real cost of my mortgage drops by 5% each year.Only if your post tax income rises faster than inflation. Otherwise, you are worse off as you pay increased prices for goods and services due to inflation, leaving you with less money to service your debt. In fact, you may have to get additional debt (i.e. short term loans, credit card bills, etc.) to pay bills that suddenly increase due to inflation or to maintain your life style in the short-term.
Yes, there is short term pain as repayment rates increase and if you can't keep up with them then your net debt increases faster but inflation is the friend of the indebted.Furthermore, central banks stamp out inflation by rising interest rates, the interest you pay on outstanding debt wil increase also leaving you worse off.
That only matters if your savings are greater than your debts but yes, inflation erodes the real value of savings, just as it erodes the real value of capital. That's a good thing as it allows more wealth to be retained in labour.And if you have inflation, working people, and everybody else, just sees the value of their savings evaporate, also leaving you worse off.
"Approximately 51,000 prices are collected for a representative basket consisting of 615 item"
This is all fine and good, but realistically how relevant is it to anyone? Who has 615 items in their basket?
Whether it's camcorders or some other out of fashion, outdated, good or service, there is a cost to be borne with those that continue to stock and or invest such items which feeds into the overall inflation (deflation) rate, albeit at micro levels.
The prupose of the chosen items is obviously not to be representative of any individual's shopping basket! It's a collection of stuff that the general public buy in large quantities, and therefore are a good measure of where the public are spending their money.
There is a much more precise way of measuring inflation - monitor your own bills and spending habits.
The fact that you use the car less and so buy less petrol does not mean the price of petrol has fallen.
There has to be an element of "all else being equal" about it though. "What if everyone becomes a monk?" shouldn't be one of the variables.Of course not, but if you are using less petrol and your income is the same then your cost of living has reduced.
Inflation being a measure of the increases in the cost of living.
There has to be an element of "all else being equal" about it though. "What if everyone becomes a monk?" shouldn't be one of the variables.
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