Calculating inflation?

Question

Ok, so petrol is up a lot, gas and electricity is up a lot, mortgages are up a lot, food prices at the supermarket are up a lot. How comes inflation is still only 2.5% ?

Can anyone list what is used to get this inflation figure - I presume there are some cheaper things such as LCD/Plasma TVs but what else is keeping the inflation level around the 2.5% mark?

Answer 1

It's easy new labour just make figures up - look at the cost for 2012 £4billion to £9 billion and most likely more if it gets completed!

Answer 2

The FED is keeping at that level, jsutlike they did with the interest rate when Alan Greenspan was the cheifThe interest rate was at 1% for a bout 10 years.

Answer 3

I must admit I am in the dark as much as you are. I do not feel that the official inflation figures reflect the reality of every day life. As you say petrol is forever increasing as is the cost of food (which is about to rise even further). I understand that many things are not taken into account when calculating the inflation figures which makes them meaningless. Perhaps it is a ploy to keep wage demands down. It always amazes me how certain organisations are allowed to increase prices by the inflation rate plus one or two per cent. Why? The whole thing justs stinks.