How the pound in your pocket took a pounding
Article Abstract:
Prices have risen by an average of 2,000% in the UK since 1947, having hardly risen at all during the previous 150 years. However, there are significant variations in the rate at which prices have risen. The cost of housing, for example, is now thirty-five times higher than in 1947, mainly the result of successive house price booms. In contrast, clothes prices have risen only sevenfold. Significant changes have been made in the way in which the Retail Price Index is calculated. In 1947, it did not include the cost of healthcare, for example, and covered only 80 essential items.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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The RPI may not measure 'real' inflation. It doesn't really matter
Article Abstract:
Some observers believe that the retail price index (RPI) shows UK inflation to be higher than it actually is. This view was prompted by a report published in 1996 by the Boskin Commission in the US which stated that true inflation in the US could be up to a full 1% or more lower than the official figure. In fact, it does not really matter which measure of inflation is used by the Bank of England as it decides whether to raise interest rates, as all measures show the same broad trend. The main challenge is setting the level of the inflation target.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
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Rates hope as Greenspan warns on deflation
Article Abstract:
Some observers believe that the US Federal Reserve will not raise interest rates in 1998. This follows comments from Federal Reserve Chmn Alan Greenspan about the possibility of deflation. He has stated that deflation in the price of goods and services can cause as many problems for the economy as inflation. He has also warned that deflation can be damaging for reasons that go beyond those linked with inflation. Discussion about deflation is currently hampered by uncertainties about what constitutes falling prices.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
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