Wednesday, June 18, 2008
Does anyone know of any work being done by any newspaper in the U.S. like the work they've been doing in the U.K. regarding the government's inflation statistics?
I'd like to see stories stateside from time to time like this one in the Telegraph.
The Daily Telegraph's Real Cost of Living Index shows that the cost of living is rising a lot faster than the official figures show.The names of things are a little different across the pond, but the situation regarding rising prices is largely the same.
But that is so far removed from most people's experience of prices in the shops and at the petrol pump that CPI might as well stand for the Chinese Prices Index. This is why The Daily Telegraph has launched the Real Cost of Living Index (RCLI).
Using the Office for National Statistics' weighted averages for household expenditure - or what people spend money on - the price comparison website moneysupermarket.com set out to provide a more realistic picture of costs faced by hard-working families.
The reasoning remains that we want an accurate picture of the rising demands on family budgets. As it stands, the RCLI shows a mixed basket of household bills, food and transport costs have risen by an average of 9.5 per cent over the last year. That is more than treble the official measure of inflation and more than double the Retail Price Index (RPI).
Of course, these are only averages and they contain wide variations for individual spending patterns.
For example, younger consumers buying electronic goods are seeing real reductions in prices - because you get more gigabytes for your bucks today than were available for any sum of money a few years ago. But that is small comfort to people who must drive to work and suffer diesel prices that have soared by 36pc over the last year - or petrol up 24pc.