Just 27% Of Manufacturers Plan Price Hikes

[MrFlibble]

America went to QE2 and what happened to their inflation? Barely anything in realtion to the size of the stimulus and they are still in a deflationary trend. The law of diminshing returns has kicked in and ever increasing QE2 is having the reverse effect because the black hole is increasing faster than the money supply. Its the Japanese effect.

You jest surely? I was in the states earlier this year, same part I was in 3 years ago, prices where 30-40% higher across the board than three years ago, priced in Dollars too.

The US inflation figures are complete tripe just like the UK ones.

[EvilEdna]

The massive defaults that are coming will take out the banks, which in turn will have to be saved by the taxpayer (again). The money for all this will come straight off the printing press pushing inflation up even higher.

If RB truly believed in this deflation from hell stuff he pumps out then he wouldn't be buying a house.

This. Printing is the only way out.

[koala_bear]

Our input prices are STILL rising! We will be forced to raise prices again soon. Even if means we sell less. It's better to sell less stock for a profit than a lot of stock at a loss...

+1

(ours would have risen ~70% in 18 months, thankfully good hedging made it less extreme and rising output prices (market based) has seen us through.

RB's "Spare capacity" in the economy argument is meaning less - if it is loss making firms, aren't going to bring it back in to production (unless they have the balls can force a weaker competitor to the wall at the moment - very few will do this!).

Unfortunately most of the MPC don't get this either but then only one does and he is the one with micro experience.

ONS factory input inflation has been running above 10% for ages, firms can't keep absorbing it for ever.

[bobthe~]

+1

Many have already put up prices, the 73% probably just mean no more price hikes for now

Interest rates going to 0 it is then.

A balance of +27% means that 27% more manufaturers are going to put up prices than those that aren't.

so this could mean (depending how they calculate that figure, it isn't clear), that

a. 63.5% will be raising prices, while 36.5% won't.

or b. 55.95% will be raising prices and 44.05% won't.

Whichever way round they calculate it, since it has gone up from 24% last month, I don't think this is deflationary...

[koala_bear]

A balance of +27% means that 27% more manufaturers are going to put up prices than those that aren't.

so this could mean (depending how they calculate that figure, it isn't clear), that

a. 63.5% will be raising prices, while 36.5% won't.

or b. 55.95% will be raising prices and 44.05% won't.

Whichever way round they calculate it, since it has gone up from 24% last month, I don't think this is deflationary...

Generally agreed but it will be a 3 way split on the balance Up : Hold : Down so the possibilities will more complicated. i.e. your won't includes Hold and Down, with any downs being subtracted from the gross ups but with holds having 0 value in the balance.

[stormymonday_2011]

German dishwashers? Meaningless.

The important stuff eg Food , Fuel , Electricity , Water & Council charges are all going through the roof.

Hardly 'meaningless' for the companies that make dishwashers or the workers in the factories that produce them unless they have a market somewhere else.

If sales of manufactured goods drop then so ultimately will demand for all the raw materials that are used to make them,