The threat of inflation

While we quote inflation as being around 2.5 to 3.0%, the reality for those in retirement is very different. Firstly what do we mean by inflation? Which measure are we looking at, CPI or RPI? What about personal inflation based on what we actually spend, rather than assumptions and averages? Measuring inflation Pensioner inflation actually runs at more than double our CPI measure of prices. The cost of goods and services vital to pensioners is very different to the average family, and hence their own experience of inflation. Champagne, MP3 players, flat screen TVs, mobile phones, and nu...