The real problem is the basis of the rate. When your government uses a rate that removes food and energy price inflation as they are "too volatile", the politicians get to skate on those items that affect you most. If you are like me, with a private pension that makes up the majority of my income, the 19% accumulated inflation over the past three years will never be recouped in any manner. It's gone. My pension is worth 19% less than it was worth three years ago (plus the food and energy inflation that has been removed from the rate).
|