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I T N: Deflation Is Back In The U K


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HOLA441

http://uk.news.yahoo.com/4/20090909/tuk-de...ts-dba1618.html

The drop in price tags is being driven by "huge" falls in food price inflation, according to the BRC.

Today's figures showed food inflation eased for the fifth month in a row, to 2.3 per cent, as the recession continues to bear down on prices and demand.

Some say yes, some say no. One lie begets another and another. Is there a deliberate campaign of dis-information going on? Are the VIs and government trying to talk us into believeing the biggest crash in world history is over in the chortest period that a recession has ever taken to come to an end?

Edited by Realistbear
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HOLA442
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HOLA444
I don't get it.

Surely deflation in this context means 'prices are falling'

Inflation of 2.3% is not deflation, it is inflation.

Or do I need to think like my sig to understand this newspeak? :blink:

RB has selectively quoted. Also from the article:

Figures from the British Retail Consortium (BRC) show shop prices across the sector dropped by 0.1 per cent last month compared with a year ago.
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When the article mentions "deflation" is back I think they are referring to the trend line.

"Deflation is a good friend to those wanting to see house prices return to affordable levels. It is not such a good friend to those wanting inflation in house prices back or who have been bitten by the gold bug."

Agree.

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RB has selectively quoted. Also from the article:
The drop in price tags is being driven by "huge" falls in food price inflation, according to the BRC.

Today's figures showed food inflation eased for the fifth month in a row, to 2.3 per cent, as the recession continues to bear down on prices and demand.

The logic problem wasn't RB's it was the article. You can't 'drive deflation' with 'food inflation'...

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HOLA449

i do not see any deflation in food prices; i have been shopping at lidl (amongst others) for a few years now and regularly buy the offers on each week, however, they have recently dropped the offers and instead their flyer just lists the every week (best value spin) prices.

I can remember getting tuna at 45p/tin last year during their offers, it has not been anywhere near that for a while. You used to be able to get bottles of the selected red wine on offer for £1.99, the cheapest I have seen in a while was £2.59 (1 week only offer). Rice has doubled in price from what it was at the start of last year and their meat and poultry offers are nothing like what they used to be.

deflation in food prices? maybe in gelatin sweets and crisps but not real food (and booze!)

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HOLA4410
i do not see any deflation in food prices; i have been shopping at lidl (amongst others) for a few years now and regularly buy the offers on each week, however, they have recently dropped the offers and instead their flyer just lists the every week (best value spin) prices.

I can remember getting tuna at 45p/tin last year during their offers, it has not been anywhere near that for a while. You used to be able to get bottles of the selected red wine on offer for £1.99, the cheapest I have seen in a while was £2.59 (1 week only offer). Rice has doubled in price from what it was at the start of last year and their meat and poultry offers are nothing like what they used to be.

deflation in food prices? maybe in gelatin sweets and crisps but not real food (and booze!)

It was 1/2 price for packs of 4 in Tesco last week. ;)

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When I go shopping in Lidl I insist it's closed to other customers. I'm like Elton John in that respect... except with Lidl obviously.

it's funny but some people have a snooty attitude when it comes to the likes of lidl or aldi; more for me I say

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HOLA4415
i do not see any deflation in food prices; i have been shopping at lidl (amongst others) for a few years now and regularly buy the offers on each week, however, they have recently dropped the offers and instead their flyer just lists the every week (best value spin) prices.

I can remember getting tuna at 45p/tin last year during their offers, it has not been anywhere near that for a while. You used to be able to get bottles of the selected red wine on offer for £1.99, the cheapest I have seen in a while was £2.59 (1 week only offer). Rice has doubled in price from what it was at the start of last year and their meat and poultry offers are nothing like what they used to be.

deflation in food prices? maybe in gelatin sweets and crisps but not real food (and booze!)

The fact that you shop in Lidl (like I do) shows why there is apparent food deflation. I was listening to the CEO of Northern Foods on the radio and he confirmed that people were trading down.

The logic of this is that if inflation got so high that people could no longer buy food from shops and survived on rats and mouldy food out of skips, the MSM would report it as deflation. :lol:

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HOLA4416

I think that should read, to keep Liebour afloat!

Things that are bought with credit (£400+ items etc.) will suffer deflation AND everyday items will be prone to inflation. The population will have even less available money to spend as taxes are going to rise to keep this country afloat.
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it's funny but some people have a snooty attitude when it comes to the likes of lidl or aldi; more for me I say

no, you just missed his very funny (in my eyes) play on the 'amongst others' part of his statment.

Made me laugh anyway.

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I think of inflation/deflation in terms of travelling in a car

So in this context 'deflation' isn't sticking the car in reverse and driving back to where we were some time ago (which is what I would call deflation), but just the car slowing down but still travelling further along at the same time. It still inflation though, just as the car is still going forward along the price highway.

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I simply don't get this deflation ********.

Maybe in MangleWorld, things are different from everywhere else, but the things I want, and the things I need are going up in price relentlessly.

For example, I bought something for £525 last spring, the same item, in the same shop is now £799. Lucky timing.

My food bill isn't decreasing, my fuel isn't either.

OK, so my rent went down a bit :rolleyes:

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HOLA4422
The fact that you shop in Lidl (like I do) shows why there is apparent food deflation. I was listening to the CEO of Northern Foods on the radio and he confirmed that people were trading down.

The logic of this is that if inflation got so high that people could no longer buy food from shops and survived on rats and mouldy food out of skips, the MSM would report it as deflation. :lol:

Not just substitution, IMO this is also about price elasticity in the face if rising demand for cheap food

The likes of Lidl, Aldi and Netto have been gifted with a wave of new customers. So they don't need to be so cheap.

Meanwhile the big four are having to be increasingly competitive to retain customers - Tesco, Saisbury's etc. are piling up new 'discount' lines

So IMPO cheap food is getting more expensive; more expensive food is getting cheaper.

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HOLA4423
When I go shopping in Lidl I insist it's closed to other customers. I'm like Elton John in that respect... except with Lidl obviously.

Yes, you need a set of deluxe, anodised, luxury, multi-bit, screwdrivers in all of your many homes.

Right im leavin........

Edit: screw error.

Edited by shindigger
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HOLA4424
I simply don't get this deflation ********.

Maybe in MangleWorld, things are different from everywhere else, but the things I want, and the things I need are going up in price relentlessly.

For example, I bought something for £525 last spring, the same item, in the same shop is now £799. Lucky timing.

My food bill isn't decreasing, my fuel isn't either.

OK, so my rent went down a bit :rolleyes:

they dont give a toss about you.

the deflation they fear is the fall in banking assets and a fall in lending....this reduces M4...and could be viewed as a credit crunch.

to counter, they print.

now all they need do is get the banking assets to be worth something, and then withdraw the printed notes. simples.

everything else is currency fluctuations, and markets moving as they always do.

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HOLA4425
Meanwhile the big four are having to be increasingly competitive to retain customers - Tesco, Saisbury's etc. are piling up new 'discount' lines

So IMPO cheap food is getting more expensive; more expensive food is getting cheaper.

Have you noticed how own brand alternatives which used to be half the price of major brand items are now only a few p cheaper. Supermarkets really take the p*ss dont they.

it's funny but some people have a snooty attitude when it comes to the likes of lidl or aldi; more for me I say

Its funny I went there once to see what it was like. None of the stuff seemed that much cheaper and it was full of chavs in tracksuits. Didnt go back again.

Edited by Johnny Storm
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