It is quite astonishing how the Government picks our pockets at every opportunity while no one seems to notice.
The release of the latest inflation figures coincides with the determination of the next rise in rail fares. In accordance with a formula decided some time ago, regulated fares are increased by the rate of retail price inflation (the 'RPI') plus 1%; this means that fares will rise by 'RPI' of 2.5% plus 1% = 3.5% next January. At the same time, the consumer prices index (the 'CPI') rose by only 1.6%, and this is the measure used, in part, to uprate public sector pensions and benefits, albeit the figure relating to September's inflation though this is unlikely to be very different form the July figure released today.
Given that incomes are subject to income tax, this all adds up to pay rising by around 1.3% while costs such as rail fares rise by 2 or 3 times as much. How the Government can justify using one measure for incomes and another for costs defeats me. On the one hand they claim that the 'RPI' is a flawed measure and on the other they merrily use it to rob the people; they say that the 'CPI' is the better measure and then ignore it when it suits them.
How is this just ? Why do the people not make much more fuss about this blatant thievery ?
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