Tuesday, Feb 10, 2009
Why deflation won’t grip Britain for long
MoneyWeek: Why deflation won’t grip Britain for long
"I suspect the disinflation of recent years is coming to an end. How it’ll all pan out in the figures remains to be seen, but even though we probably will see consumer price deflation this year, right now I don’t see it being around by the end of 2010."
Posted by damien @ 10:52 AM (559 views) Add Comment
4 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. paul said...
Oh that's a little cheeky - the only mention you *I mean John Stepek* makes of disinflation in the article is the quote you've given! That's like a film trailer that has all the best bits of the movie!
2. bellwether said...
I like Moneyweek although at times their analysis can be a bit primitive - as here.
3. goweresque said...
Why don't they quote retail figures in units sold as well as by value? Because as the author of this article says, the reason for the rise in sales is not that people are buying more stuff, just that the stuff is costing more now. That to me says more than 'retail sales up X%'
4. 51ck-6-51x said...
"""
There’s also the small fact that the weak pound makes imports from China and most other places more expensive. If that continues, then shops will be unable to do anything but hike prices later in the year, or face making a loss on sales.
"""
...or shut up shop, or only sell local produce - if nobody is buying they have no such power to "set prices"
- that would be a depression - there may be huge demand, but no incentive to supply (think of a mile long queue outside a poorly stocked bakery).