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Inflation - how is it for you?

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Andrew Verity | 11:07 UK time, Wednesday, 9 April 2008

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What happens on Thursday? It's the regular pub quiz at the Witton Inn in Blackburn - with a prize of up to £100. At the Bank of England they'll be talking money too - as they decide if it's time to cut interest rates again.

Numerous voices in the City of London and business will be outraged if it doesn't cut rates to ease the pressure from the credit crunch and calm down the housing market.

It can do that because it only has to raise rates to combat inflation - and inflation's not a problem. Right?
Hmmm. Inflation is 2.5 per cent on the official measure (latest data for February, consumer price index), up from 2.2 per cent the previous month and well above the official target of 2 per cent. If you take the measure that includes an element for housing costs - the retail price index - it's 4.1 per cent.

And that masks other effects. Pushing prices up most are essentials - not just housing but gas and electricity - which some people need more than others. That's led to accusations that the figures don't reflect people's actual experience; your own, personal inflation rate could be much higher - or a bit lower.

Tomorrow I'll be blogging on inflation throughout the programme - and I'd like to know your own experience of the cost of living now - which prices made you pleasantly surprised - and which made you gasp and stretch your eyes. Blog me here on your own, personal inflation - any questions welcome

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