food and energy! who needs them?

August 16, 2011 6:41am CST
in the uk we have something called the monetary policy committee, whose job it is to meet an inflation target of 2%, by controlling interest rates. at the momeny they want to keep interest rates low because of poor growth figures, but as a result inflation is nearly 5%, and way above the target they have been set. so clever people that they are,they justify this by saying there is a measure called "core inflation",which is a lower figure of around 3%,at the moment. but the reason it is lower is because it leaves out volatile items like food and energy costs, such as gas and electricity. and then they say inflation isn't so bad. but its just so ridiculous, as food and energy are absolutely essential to our very existence, how can they claim to be measuring "core" inflation by taking out things that are so important. i'm sorry its such a boring subject, but its just so absurd, i would welcome some reassurance from mylotters that it is not the lunatics running the asylum, but it really does feel like it at the moment.
3 responses
@cindy12 (88)
• China
16 Aug 11
I think there exist unreasonable inflation all ovet the world.The prices of everything are too high that many people cannot afford.I think it is time the "PEOPLE" should do something to make the economy balance.
16 Aug 11
i think you may well be right about that cindy12, we have left it to the experts and look where it has got us.
@koperty3 (1877)
16 Aug 11
I think is an absurd too. So to lower inflation we should be plants now and be feed by sun energy? They created another useless definition to cover their mistakes. This is the truth. They should do everything to speed up economy and as I see they do everything to stop economy from growth.
16 Aug 11
you think its absurd too, koperty3, i am reassured that its just me who thinks its all a bit mad.. its like they let inflation keep going up, and then no one can afford anything other than the essentials, and then they wonder why no one is buying anything. you are right, they need to speed up the economy, but they just don't do the right things.
@Flash2 (347)
• United States
16 Aug 11
Nope, It's not boring. And what youre saying is true. They do the same thing here in the states... Pricesof fuel and food are on the rise. The things everyone needs, so they don'tcount these in the inflation index...How stupid.
16 Aug 11
they do that in the US too, do they? doesn't surprise me at all. its a big con trick.