Friday, Feb 09, 2007
Looks fairly disinflationary to me....
BBC News: British Gas to cut energy prices
"British Gas has said it will reduce its gas and electricity prices next month.
The group says it will cut gas prices by 17% and electricity by 11%. It added that the average annual dual fuel bill would fall by £167 to £953."
Disinflation::- a terrible (yet meaningful) Americanism for a decrease in the rate of inflation.
Posted by monty @ 11:55 AM (145 views) Add Comment
11 Comments
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1. inflation is eating my savings said...
Although oil is on the way back up.
Energy is non-discretionary- like a tax. One has to pay it. I don't believe the rises or falls in these times are particularly significant. If anything, a fall in prices frees up more discretionary income to spill over into other things- like house prices. Hmmmm.
2. Ticktock said...
Has anyone noticed whats happened to Stirling since the MPC failed in its duty (yet again) yesterday.
Oh dear.
Monty,
With current Money and credit supply growth levels being what they are, nothing is disinflationary. The money will just go somewhere else, as the above comment suggests.
3. Sam said...
yes, but the long term trend for energy prices, is up. the reason why prices bottomed out is due to a new pipeline installed, supplying gas the UK.
this is causing more comeptition between the companies bringing the stuff here on ships. -- in the long term we're buying from the same people who supply the EU and china.
the price is not going to come down.
4. Surfgatinho said...
Don't see gas prices staying low for that long!
http://www.wtrg.com/daily/ngspot.gif
5. Me Me Me said...
As BG are on average 9% more expensive it isnt really saying much considering gas prices been low since July 06. 8 month lag, why, thank you BG.
6. george monsoon said...
Is there a difference between deflation and disinflation? (other than one of the two uses correct English)
7. george monsoon said...
Is there a difference between deflation and disinflation? (other than one of the two uses correct English)
8. Northernlad said...
Mmmm..... a rise of 33.6% and then we'll throttle back by 17%.....that's still a wacking 16.6% in a year....IF it happens that is.
http://news.bbc.co.uk/1/hi/business/6112304.stm
9. Rimmer said...
I have to ask British Gas why? could it be they over acted or could it maybe be they have lost 1 million customers in the last 3 years?
10. monty said...
Yes, disinflation is a decrease in the rate of inflation while deflation is a negative rate of inflation. Disinflation is akin to slowing down your car while deflation means your car is in reverse.
11. Nohpc said...
This should cause disinflation even though it will free up more expendable cash as companies should be able to pass on the lower costs.