Guest tbatst2000 Posted March 22, 2009 Share Posted March 22, 2009 http://www.telegraph.co.uk/finance/finance...mists-warn.html I bought a new bike last week, one that's made in the US. I had a choice between this year's model and last year's. There was nothing substantively different between the two yet this year's model was, before applying discounts to the price of either, around 30% more than last years (I bought the 2008 model). Petrol, whilst cheaper than 18 months back, is around the same price as a year ago or a bit more. My food shopping bill hasn't moved either way. My season ticket for the train is up around 7%. Where is the f*cking deflation is what I want to know???? Can anyone come up with anything that they've actually had to buy recently (housing excepted) that's actually got cheaper over the last year? Quote Link to comment Share on other sites More sharing options...
domo Posted March 22, 2009 Share Posted March 22, 2009 Probably big ticket items. Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted March 22, 2009 Share Posted March 22, 2009 All electronic goods that I've looked at seem to have hit the bottom in December. Food is where the main inflation has been - 30% on a lot of items and this doesn't take into account changes in size or quality e.g. through substitution of ingredients! Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted March 22, 2009 Share Posted March 22, 2009 Probably big ticket items. It was a damn expensive bike! Quote Link to comment Share on other sites More sharing options...
ntb Posted March 22, 2009 Share Posted March 22, 2009 (edited) Eh? You want to see deflation - I'll give you a hint. Have another think about what this site is about and what is happening. It's a classic Austrian school bust - high order capital goods falling in price, low order goods rising in price. This is overlaid with supply and demand distortions as we move to the new reality and currency driven price changes that are also causing price movements. Edited March 22, 2009 by ntb Quote Link to comment Share on other sites More sharing options...
0q0 Posted March 22, 2009 Share Posted March 22, 2009 There are some people posting on this board who keep telling me everything is cheap, being discounted, even food. I think it's as Harry Hill would say (in his original act on television some years ago), "Not really of course, just the power of suggestion!" http://www.btinternet.com/~DandyDan/jokes/quote1.htm --- just for fun, some other Harry Hill quotes --- My mother was a lolly-pop lady... and by that I mean she had a long thin body, and a big, fat, sticky head. Nelson Mandela - more of those crazy shirts please! No ticket, no coat. ...Not really of course - the power of suggestion! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 22, 2009 Share Posted March 22, 2009 http://www.telegraph.co.uk/finance/finance...mists-warn.htmlI bought a new bike last week, one that's made in the US. I had a choice between this year's model and last year's. There was nothing substantively different between the two yet this year's model was, before applying discounts to the price of either, around 30% more than last years (I bought the 2008 model). Petrol, whilst cheaper than 18 months back, is around the same price as a year ago or a bit more. My food shopping bill hasn't moved either way. My season ticket for the train is up around 7%. Where is the f*cking deflation is what I want to know???? Can anyone come up with anything that they've actually had to buy recently (housing excepted) that's actually got cheaper over the last year? deflation..where is it....now lets see, unemployment up because people have less money to spend, interest rates at 0%, mortgages at 0% for some, banks not lending, borrowers not borrowing, bond markets in trouble...its just the start...wait till it really gets going. Quote Link to comment Share on other sites More sharing options...
red Posted March 22, 2009 Share Posted March 22, 2009 I took a cab in Central London last week - eye-wateringly expensive. Any cabbies out there who can verify whether or not they have reduced their fares now diesel is a quid a litre as quickly as they put them up when diesel was £1.30 a litre? Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted March 22, 2009 Share Posted March 22, 2009 Eh? You want to see deflation - I'll give you a hint. Have another think about what this site is about and what is happening. As Mervyn King mentioned on several occasions, asset prices are outside of the BoE / government's remit and they are not included in CPI at all. The reason RPI is falling is because the BoE has cut interest rates to such ridiculously low levels! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 22, 2009 Share Posted March 22, 2009 I took a cab in Central London last week - eye-wateringly expensive. Any cabbies out there who can verify whether or not they have reduced their fares now diesel is a quid a litre as quickly as they put them up when diesel was £1.30 a litre? there are still fuel supplements on travelrepublic pricings Quote Link to comment Share on other sites More sharing options...
0q0 Posted March 22, 2009 Share Posted March 22, 2009 I took a cab in Central London last week - eye-wateringly expensive. Any cabbies out there who can verify whether or not they have reduced their fares now diesel is a quid a litre as quickly as they put them up when diesel was £1.30 a litre? Bus companies upped their fares last year citing rising price of road fuel as the reason. Road fuel dropped back significantly and yet, surprise surprise, no posters giving warning that prices are now to be reduced! LOL. They all take the public for mugs, from the govt downwards. As Mervyn King mentioned on several occasions, asset prices are outside of the BoE / government's remit and they are not included in CPI at all. The reason RPI is falling is because the BoE has cut interest rates to such ridiculously low levels! The VAT cut also impacted inflation downwards, how convenient. Quote Link to comment Share on other sites More sharing options...
deadman Posted March 22, 2009 Share Posted March 22, 2009 None that I can think of. A US made guitar that I've been wanting has gone up from around £1100 to £1300 though. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 22, 2009 Share Posted March 22, 2009 None that I can think of.A US made guitar that I've been wanting has gone up from around £1100 to £1300 though. anything in priced in dollars will go up because the £ was 30% higher 6 months ago. this means food, software, electronics, shipping, oil...quite a lot actually. as these things rise in price and wages do not follw, that leaves less...much less when leveraged, for buying things like cars and houses. Quote Link to comment Share on other sites More sharing options...
UndercoverElephant Posted March 22, 2009 Share Posted March 22, 2009 Where is the f*cking deflation is what I want to know???? Can anyone come up with anything that they've actually had to buy recently (housing excepted) that's actually got cheaper over the last year? Petrol. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 22, 2009 Share Posted March 22, 2009 maybe its the hedonics effect. This years train is nicer than last years train. This years petrol is better than last years petrol. etc... Quote Link to comment Share on other sites More sharing options...
whoami Posted March 22, 2009 Share Posted March 22, 2009 (edited) Eh? You want to see deflation - I'll give you a hint. Have another think about what this site is about and what is happening.It's a classic Austrian school bust - high order capital goods falling in price, low order goods rising in price. This is overlaid with supply and demand distortions as we move to the new reality and currency driven price changes that are also causing price movements. +1 (Sigh) For the umpteenth time - deflation means the things you want go down in price, the things you need go up in price. Edited March 22, 2009 by whoami Quote Link to comment Share on other sites More sharing options...
applesauce Posted March 22, 2009 Share Posted March 22, 2009 Used 'prestige' cars. Rent. Petrol? Coffee chain cappuccino is down from 1.95 to 1.91 due to vat change. So obviously now I buy 3. Quote Link to comment Share on other sites More sharing options...
Mark Uttley Posted March 22, 2009 Share Posted March 22, 2009 Gas -10% Electricity -7% Quote Link to comment Share on other sites More sharing options...
ImA20SomethingGetMeOutOfHere Posted March 22, 2009 Share Posted March 22, 2009 I think that falls in RPI are entirely due to housing. CPI is still up in the stratosphere. Bus fare round here has gone up from £3.45 to £3.60 for a 6 mile journey recently. Tescos cheapo chocolate - last week 70something pence now 94 pence. A taxi I got the other day had a notice on the dashboard saying that fares were going up 3% The list goes on and on. At least I might be able to afford a f***ing house one day. Quote Link to comment Share on other sites More sharing options...
Errol Posted March 22, 2009 Share Posted March 22, 2009 Train fares -- UP Price of Meat -- UP Council Tax -- UP Price of coffee - UP Price of chocolate -- UP Price of fruit/veg -- UP Wages -- Frozen/down. Quote Link to comment Share on other sites More sharing options...
dpg50000 Posted March 22, 2009 Share Posted March 22, 2009 Train fares -- UPPrice of Meat -- UP Council Tax -- UP Price of coffee - UP Price of chocolate -- UP Price of fruit/veg -- UP Wages -- Frozen/down. So far this year: Trade cost of the Wii up £20 Apple's iMac and Minis up by 18-20% My water rates up 8% My council tax up 3.4% My gas and electric haven't come down at all (EDF, but an "online tariff that doesn't qualify for their recent small reduction). My employer wants to cut wages by 5% Quote Link to comment Share on other sites More sharing options...
Errol Posted March 22, 2009 Share Posted March 22, 2009 Price of gold -- UP Price of silver -- UP Quote Link to comment Share on other sites More sharing options...
kagiso Posted March 22, 2009 Share Posted March 22, 2009 I bought a new bike last week, one that's made in the US. I also bought a bike a few weeks ago, electric folding mountain bike all in £400. Something similar would have been above a grand even a year ago. Difference is my bike came from China, not US. Build quality leaves something to be desired, but it fills the role that I wanted very well (can take it on a rush hour train, then cycle 5 miles across London without perspiration). Manufactured goods, from China continue to fall in price, even following the devaluation of the pound. Petrol, gas, electricity and food are all slowly coming down following the commodity bubble last year. (And metal bugs on this forum should note that silver is struggling to maintain its 200 day rolling average, collapse to follow shortly, quickly followed by its associated unmentionable.) And indeed, gloriously, rents are coming down very swiftly now. The most dangerous part of the deflation is of course wages, which are clearly being held flat at best. My own wages were deflated by 100% when my contract ended on Thursday. I am not overly concerned with the sun out and the STR fund in the bank, I will probably get work easily enough in the next few months, but I will probably have to be flexible on the rate - which would most certainly be deflation. If we do move into wage deflation we are in very serious trouble; two decades of Japan style horror. Give me 20% inflation rather than 2% deflation any day. We know how to solve 20% inflation. We don't know how to deal with deflation. As I have asked before, could one of the inflationistas on this site give me a coherent plan for Japan to break out of its current problems? If you can't do that, please don't support policies that will push us into the same position. Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted March 22, 2009 Share Posted March 22, 2009 I also bought a bike a few weeks ago, electric folding mountain bike all in £400. Something similar would have been above a grand even a year ago. Difference is my bike came from China, not US. Well, I did also look at Giant (which seem to be mostly made in China) and I can't say I noticed any price reductions on the sorts of bike I was looking at - a decent way about the £400 mark though, so it's possible different parts of the range are changing price differently. The Japanese stuff was also way more expensive, again due to the collapsing £ vs the Yen I assume. Quote Link to comment Share on other sites More sharing options...
applesauce Posted March 22, 2009 Share Posted March 22, 2009 Im happy with deflation in the short term. After this period I want inflation. Our government are working on making this happen with their QE cunning plan. It might work. For me personally I am living in a deflationary environment. In response to this I am spending more because there is some decent value out there. Ive bought a better model of 2nd hand car than I would have been comfortable with before, because the next model up fell into the price range I was prepared to spend. Im looking at renting a better place to live, it will cost me more, but is better on a 'quality per pound' basis. There are better opportunities now to have a better time with your money than Ive seen before, so I am taking advantage of them. This is my final blow out before I saddle myself with a mortgage in 1 year+ depending on how things go. At which point I will overpay to clear the debt. Im hoping for deflation up until the point I buy a property, followed by inflation during the period of my mortgage. It looks like it might turn out that way. Quote Link to comment Share on other sites More sharing options...
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