Inflation Down

[joeyconcrete]

Article here

IOMOnline Article

 

I'm not an economist by any means, but I was a bit puzzled by this article. The government state that inflation has dropped from 6.4% (12/04) to 3.7%. Yet, all the items they quote have significant percentage increases.

 

20% Petrol

3.2% Food

10.7% Bread

11% Cheese/Eggs

36% Electricity

17% Gas

20% Oil

18.8% Average increase in all goods

 

Again, I'm no expert but surely thats a good indicator that inflation is high?? If not, what does inflation actually represent to the average person?? The dictionary defines inflation was "A general increase in the price level of goods and services", so ehhh..

 

Bernard Moffit has a good point, the figures do look a bit iffy... Maybe the treasury should take another look at their Excel 97 spreadsheet or at least explain how it indicates a drop.

 

It may be that I don't understand it, if thats the case can someone explain?

[Slim]

Inflation uses the retail price index and is a notoriously poor way of measuring cost of living. The problem these days is we're all living on different stuff, so anyone one index is quite meaningless as the iomonline article illustrates.

 

A big weighting is the so called 'basket of goods'. It's a list of items from a weekly shop, but as our weekly shops are all so different, it's a bit rot really. It's also infreqently updated and we're in a very fast consumer society. Thinks that have gotten cheaper fast, eg mobiles, games consoles, etc, aren't measured.

 

Pretty poor system really, considering most of our pay rises is driven by it.

[When Skies Are Grey]

Does the inflation figure also take in to account salaries?

[Minxie]

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

[TheScope]

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

<{POST_SNAPBACK}>

 

God I hope not, its the last reason Ive got left for staying here.

[RC-Drift.com]

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

<{POST_SNAPBACK}>

 

God I hope not, its the last reason Ive got left for staying here.

<{POST_SNAPBACK}>

...and a lot of businesses too

[the-rhymes]

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

<{POST_SNAPBACK}>

 

 

I would say no, but I know nothing! Are they talking about the EU savings directive? See:

 

http://www.gov.im/treasury/incometax/techn...gsdirective.xml

 

Which is making the IOM and elsewhere pay tax for EU citizens squirrelling money offshore.

[When Skies Are Grey]

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

<{POST_SNAPBACK}>

 

Quite the opposite, the plan is for a zero rate of tax for both residents and non-residents, but subject to the Savings Directive issue mentioned above

[Slim]

Does the inflation figure also take in to account salaries?

<{POST_SNAPBACK}>

 

Er, no. It's the cost of living, not earning. In most businesses the annual increase in salary reflects inflation though.

 

 

A friend who is visting for the TT told me that they had heard that over the next couple of years IOM tax is going to be brought up to the same as in England, is that right?

 

I seriously doubt it. He might be getting confused with a couple of european directives, the zero rating of company tax for example. Not sure why it'd be brought to the same as england, as englands taxation isn't in line with europe either.