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Showing results for tags 'Deflation'.
LInk: Washington Post There are many threads at the moment about 'good and bad deflation'. Well, our own lovely George Osborne has argued that the UK has good deflation, while those foreign chaps have it bad. And on the Spanish thread, economist Edward Hugh suggests that 'good deflation' is by no means impeding the 'Spanish recovery'. . . may even be helping. So what should we think about Ukraine? I have a girlfriend from Ukraine staying at the moment who is soooh looking forward to paying off her credit card bill at the end of the month . . . buy with good money and pay back with bad. No deflationary, deferred purchase syndrome here. More like shop 'til you drop. So what does the team think? Could 39,000% inflation p.a. be good, more effective than QE? Crazy I know . . .
Telegraph 24/10/14 'Butchers, bakers and fishmongers have been forced to reduce their prices for the first time in a decade as shoppers flock to Aldi and Lidl for cheap deals, figures indicate. A price war between supermarkets over the past year has forced food prices so low that even local shops made reductions, according figures from the Office for National Statistics. Supermarkets reduced prices by 1.5 per cent on average in 12 months, following a downward trend that started two years ago as the big names offered more cheap deals. However, not since 2004 had the cost of meat, fish, vegetables and baked goods from small local shops fallen, the ONS said. Average prices were 0.3 per cent lower in such stores compared to a year ago. The "war" among supermarkets has had a dramatic effect on British shopping habits, with Tesco yesterday reporting a huge 92 per cent fall in pre-tax profits. Its chairman, Sir Richard Broadbent, said he would resign. Britain's biggest retailer has lost more than one per cent of its market share in the past year, according to Kantar Worldpanel, while Sainsbury's sales fell 3.1pc. Meanwhile, Aldi and Lidl increased sales by 27 per cent and 18 per cent respectively, as more middle-class shoppers were tempted to look for bargains. By expanding its fresh food and organic ranges, Aldi is attracting shoppers who would usually visit Tesco, Sainsbury's or Morrisons, analysts said. But it had also targeted more affluent shoppers by offering "luxury" foods at cheaper prices. For example, from next week it will offer whole, cooked lobsters at £5.99 – around half the price in the big supermarkets – and caviar at £1.49 for a 100g pot. In general, shoppers spent less last month due to the unseasonably warm weather, the ONS said, with purchases of new winter coats and jumpers delayed. Clothing and footwear sales were down 7.8 per cent from August, the ONS said, and 4.1 per cent lower compared with September last year. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “While the supermarkets are battling it out on price, the real winners are consumers. Extensive price cutting by some supermarkets in a bid to win the price war means that customers are saving on everyday items such as vegetables and milk."' Aside from the hit to shop owner incomes,one does wonder how much longer local shops can cover the rents that are being asked. I recently bought some fruit from my local grocer and was surprised by how reasonable it seemed.I actually felt quite sorry for the lady as the council had just handed her a £60 ticket for overstaying her free hour.Summed her problems up really.
More deflation ? I've just visited the local scrap yard to be told by the manager that iron scrap prices have " Collapsed " by 25% Stainless steel prices have also dropped significantly, Aluminium is so-so. Metal Price Guide in previous months http://www.letsrecycle.com/prices/metals/ferrous-metal-prices/ferrous-metal-prices-2014/