Inflation watch


#421

Ordinary people ain’t feeling the deflation. Stats can paint whatever picture you want.


#422

Every time I fuel the car, I am affected by the deflation in commodity prices. Fortunately we don’t live in rented accommodation so the inflationary pressures there are not affecting us.


#423

Really ?
The last time a barrel of oil was this cheap you were probably paying 70c a litre.


#424

I’m paying €1.20 a litre instead of €1.50+ as I was two years ago, even with all the extra tax (& exchange rate) :smiling_imp: It’s still cheaper.


#425

I paid 98c the other day. I honestly never thought I’d see the day again.


#426

All prices don’t inflate and deflate in tandem. Its the cumulative effect of all prices on the household budget and how that in turn effects peoples purchasing power which counts, at the end of the day. One can always point to individual examples of inflation and deflation at any given time, it doesn’t really prove anything.


#427

This also proves that while some see deflation e.g. a high mileage driver in a house with a tracker mortgage, others see inflation.


#428

Completely agree, its pretty chaotic. How the aggregate is presented however, is how the political classes can in turn phrase their mantra, subsequently what we are constantly told is that we have deflation. My original point is that for a lot of folks out there, the cost of living is going through the roof, the whole deflation Vs inflation argument is moot, because they when you pick and choose what goes into the aggregate basket to suit your narrative then you can paint the picture anyway you want. I see a lot of people starting to struggle because of rising accommodation, healthcare, insurance, education, public transport costs etc.

Add to this the obscene middle class angst that pervades Irish culture since the boom and people find themselves shelling out for crazy prices just to keep face, but that’s a whole other discussion. One good aspect of the recession is it forced people to rethink their spending habits, but recently I am seeing a return to irrational exuberance.


#429

Consumer Price Index, March 2016

cso.ie/en/releasesandpublica … march2016/

% monthly change +0.4%
% annual change -0.3%

Private Rents (table 7)
% monthly change +0.2%
% annual change +9.2%

Local Authority Rents (table 7)
% monthly change +1.6%
% annual change +2.2%


#430

Miscellaneous(up 4.3%) includes motor insurance which is up by much more than 4.3%.
It is more expensive for the working poor to pay for accommodation and to travel to work.

Just as well that the last National budget forced employers to raise their minimum wage.

12.5 Insurance 5.6104 135.6 1.9 11.3
12.5.2 Insurance connected with the dwelling 0.6130 102.7 2.1 9.5
12.5.3 Insurance connected with health 3.3933 139.0 0.9 3.4
12.5.4 Insurance connected with transport 1.6041 150.0 3.9 31.9
Motor insurance 1.5867 150.6 3.9 32.3
Motor cycle insurance 0.0135 108.7 0.0 5.8
Motor car insurance 1.5732 151.0 3.9 32.6
Travel insurance 0.0174 95.7 0.0 -5.8

someone can perhaps explain to me why the weightings for health insurance which is voluntary are so high compared to motor insurance which is mandatory for most(unless you are fortunate to be on a public transport route or decide to pack it all in and go on the dole or emigrate).


#431

According to a lad from the Insurance Assoc on the radio this AM, motor insurance is up 33% on this time last year.
Interestingly, he also said that only 20% of claims go through the PIAB.
The ceiling on awards in the Circuit Courts for claims was raised recently from 38k to 60k and thats had a big knock on impact over cases in the pipeline.


#432

Just read this…

theguardian.com/commentisfre … t-planning

…and was wondering (excuse my ignorance for asking) does the Central Bank/ECB include house prices when calculating inflation? Bank of England doesn’t.


#433

Have people shopped around? My premium renewal jumped from 600 to 900 so I shopped around and got 500!


#434

That’s a good article in the guardian adressing a number of points. Also highlights that it is not true that ‘ireland is different’. The same bullshit is ongoing in the uk, only in many ways it’s worse. So the problem and solution are bigger than the scene around dublin media/govt/banking/lobbyist circles


#435

Is Inflation for younger people different to older people. Could it be that the grey-headed who control everything don’t care about the costs for the younger and there is two track inflation system in operation.
The grey headed wealthy for instance don’t care about rental costs or insurance costs as they generally don’t rent and motor insurance costs are a smaller percentage of their cost of living than for the young.
Community rate motor insurnace and it would be a topic which would get handled.


#436

I could see the 8th amendment being repealed, the CPSU admitting that PS pensions are unsustainable & need to be cut and the MNC paying 12.5% on all profits before any politician would even take on the prospect of community rating car insurance.

I do agree completely the inflation figures are a nonsense and tweaked to show as little as possible in the same way the ‘live register’ has been destroyed as a measure of those who are out of work.


#437

Good question. It may look stacked for the older generation but then health becomes a urgent and unavoidable matter and everyone starts competing for the same resources. I know locally there’s huge demand for carers and the price seems to be going in one direction!


#438

No, the cost of rent and the cost of borrowing money are included, but not house prices directly (same as the method in the UK).


#439

That’s a good article in the guardian adressing a number of points. Also highlights that it is not true that ‘ireland is different’. The same bullshit is ongoing in the uk, only in many ways it’s worse. So the problem and solution are bigger than the scene around dublin media/govt/banking/lobbyist circles

Thanks Yogan

…i think you’re right Liquidator. It’s all too depressing. I just wish that we could move away from the culturally embedded idea that property is investment opportunity for the average man. It raises my hackles when older well meaning relatives of mine, who through have (accidentally) accrued wealth through their PPRs, insist that I borrow as much as I can and buy the most expensive house that the bank will allow me…what could ever go wrong!! :sick:


#440

Just imagine the deflation this country would have experienced in 2008-10 if the value of houses sold had been included.