Weekly Roundup, 26th May 2020

Weekly Roundup 200528

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5 Responses

  1. Avatar Al Cam says:

    Official annual CPI inflation for: food & non-alcoholic drinks; and fags & booze were: 1.3%; and 2.5% respectively in April

    • Mike Rawson Mike Rawson says:

      Feels more like a 50% increase over two months to me …

      • Avatar Al Cam says:

        Woh!
        This might be because your habits have changed, for example:
        a) more eating/drinking at home – e.g. no visits to restaurants/pubs;
        b) buying things at the supermarket that you usually buy from other shops (as they are currently closed);
        c) just at home more – ie no holidays/breaks away;
        d) comfort eating/drinking – as it helps fill the day.

        I have observed some of these factors in our spending during lockdown, and they explain most of our c. 30% uplift (in terms of £’s spent on groceries during lockdown) vs last year.

        • Mike Rawson Mike Rawson says:

          It’s mainly because:
          – the shops have all increased their prices
          – I can’t buy in bulk
          – there is no public transport, so I have to buy more at local shops aimed at yummy mummies

          I’ve been working from home for 8 years, so I’m not eating more, and I’m actually drinking less.

          • Avatar Al Cam says:

            Interesting. WFH was not alien to me. I did it for a day or two a week before I pulled the plug on work some years ago.

            I reckon your points 2 and 3 above may be the most influential in your scenario. In our scenario, the prices are remarkably stable – but we are still using exactly the same shops (bigger chains); albeit we are now doing 1 big shop / store/ week rather than 1 bigish shop / store / week plus frequent top-up visits in-between.
            We have never been particular fans of regular bulk-buying/BOGOF, etc and generally buy what we need when we need it. Having said that, I do like a bargain when I find a real one.

            The ONS data reflects relatively stable prices at the shops for food & drink – even for high demand goods, see Section 6 at:
            https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/conditionsanddiseases/bulletins/coronavirustheukeconomyandsocietyfasterindicators/21may2020

            We have also been shopping for others – which could confuse our picture – but I have been careful to back most of this out of my calculations.

            For us, the single biggest difference was that we normally go away for a few weeks during the lock down period – and had to abandon those plans – but that is a whole other story!

            As I am sure we have discussed before, inflation (CPI, RPI, or whatever other flavour) is an average [latent] parameter and absolutely no household is, by definition, average. So each of us experiences inflation in their own way.

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Weekly Roundup, 26th May 2020

by Mike Rawson time to read: 5 min
More in News
Weekly Roundup, 18th May 2020

We begin today's Weekly Roundup in the Economist, where they were working out the costs of the lockdown.

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