winkie Posted February 12, 2012 Share Posted February 12, 2012 bought some butter today. most brands £1.50 a pat. 2008 was when I could buy the brands at £1 or less. No VAT on butter. ...butter has doubled in price over the last 24 months.....non branded are £1.19 a pack. Cheese also used to be cheap now it can be more expensive per kilo than steak. ...buy some milk and churn it yourself or buy a cow or two......... Can anyone explain why butter and cheese has risen in price so much recently...... NB Noticed for the first time yesterday a pack of veg for £1.07.......that £1 barrier has been broken, and the weight is as low as it can go without looking pathetic. Quote Link to comment Share on other sites More sharing options...
The Spaniard Posted February 12, 2012 Share Posted February 12, 2012 (edited) Dont forget, they are tax free. As is any capital gain on gilts, including index-linked gilts. Edited February 12, 2012 by The Spaniard Quote Link to comment Share on other sites More sharing options...
happy_renting Posted February 12, 2012 Share Posted February 12, 2012 Firstly. It's won't have fallen. Just risen less fast. Secondly. It will be caused the recession which is caused by the inflation which was caused by the BOE. Thanks very much Merv. Inflation will have fallen, it is prices that will have risen less fast. Quote Link to comment Share on other sites More sharing options...
frederico Posted February 12, 2012 Share Posted February 12, 2012 Inflation will have fallen, it is prices that will have risen less fast. not deflation then Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 12, 2012 Share Posted February 12, 2012 not deflation then cant have deflation when they are devaluing the currency. Its what its supposed to counter. Note who suffers in a deflation 1. Banks 2. Borrowers deflation is the natural market response to wasted borrowing. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted February 12, 2012 Author Share Posted February 12, 2012 The headline should read: Prices jump 3.6% in one year Anything else is banker propoganda. The spectre of deflation rises as inflation falls Cash-strapped households should be helped by a sharp fall in inflation this week but it carries with it the seeds of an equally uncomfortable outcome - deflation. You'll love this in the Telegraph then. A sharp fall in inflation where it's still 1.6% above target. Quote Link to comment Share on other sites More sharing options...
LiveAndLetBuy Posted February 12, 2012 Share Posted February 12, 2012 A one-off factor would linger precisely ONE year in the inflation figures - we've had three or so years of official inflation figures (which are unrepresentative of a much higher real-world inflation) substantially above the target rate (which is too generous anyway) at a time when we should have been seeing sharp deflation. ... Yes that's why the imported inflation caused by the "one-off" devaluation of the currency 3 years ago fell out of the figures two years ago. However at the same time oil and grain prices started to rise again, and of course VAT was increased. All of these are sufficient to explain why UK inflation has been relatively high over the last 3 years. If you don't accept that then look at countries like Greece and Spain that certainly have not had QE and you'll see that they have had relatively high inflation over the last couple of years. QE might well lead to inflation in the future, who knows? But so far all it has done is bail out the banks and buy some time for the government to reduce the deficit. They should get on with it. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 12, 2012 Share Posted February 12, 2012 QE might well lead to inflation in the future, who knows? But so far all it has done is bail out the banks and buy some time for the government to reduce the deficit. They should get on with it. +1 QE is the dog that didn't bark. The central bankers can supply the commercial banks with as much juice as they like but if there's no demand in the macroeconomy then all it will do is sit there useless and unconsumed. As for balancing the budget? First Gid was going to do it in five years, then seven, now there's hints and whispers he'll need two full parliaments. Or maybe forever. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted February 12, 2012 Share Posted February 12, 2012 Nope, price inflation has fallen. Prices themselves have risen less fast (compared to last month) but, by definition, that means that price inflation has fallen In other words, prices are still going up. So... not deflation yet. Quote Link to comment Share on other sites More sharing options...
billybong Posted February 13, 2012 Share Posted February 13, 2012 (edited) http://www.independent.co.uk/news/business/news/inflation-figures-to-dip-below-banks-target-6774208.html The Bank of England is likely to signal it is prepared for yet more money-printing, after its £50bn move last week, when it publishes its inflation report on Wednesday. The Bank's quarterly forecasts are likely to show inflation below its 2 per cent target in two years' time, signalling the need for more stimulus through quantitative easing. The Bank has created £325bn in electronic cash so far and economists predict rate-setters could print another £25bn in May. Yeah yeah. Forecasts "likely below 2 % in two years time". So it's forecast to make near it's inflation remit in 2 years time and that's a signal for yet more billions of printing. Total and utter crooks. Edited February 13, 2012 by billybong Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 13, 2012 Share Posted February 13, 2012 Yeah yeah. Forecasts "likely below 2 % in two years time". So it's forecast to make near it's inflation remit in 2 years time and that's a signal for yet more billions of printing. Total and utter crooks. where are those fan charts again...as 2% is POLICY...each and every fanchart the BoE produces MUST show a 2% end point....Its POLICY and they have to be seen to be following it. and we need the actuals too....just to show that POLICY is not REALITY. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted February 13, 2012 Share Posted February 13, 2012 (edited) where are those fan charts again...as 2% is POLICY...each and every fanchart the BoE produces MUST show a 2% end point....Its POLICY and they have to be seen to be following it. and we need the actuals too....just to show that POLICY is not REALITY. The economy is such a complex beast in my view they do well to acheive within 20 either side of the 2% (-18%+22%) target, the fan charts show them well within that area (i think their own target is too harsh) so good job i say Edited February 13, 2012 by Tamara De Lempicka Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 13, 2012 Share Posted February 13, 2012 The fact that 2% inflation is considered normal or in any way desirable shows how insane the system is. Th research I've read suggests that humans have an 'instinctive' discount rate of between 15 and 30%. Which is why it is extremely easy to persuade people (plural) into huge amounts of debt. It also means that if you are going to have low-to-zero inflation, you are either going to have to strongly restrict consumer credit and mortgages by fiat, or educate people very intensively about debt repayment. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted February 13, 2012 Share Posted February 13, 2012 Th research I've read suggests that humans have an 'instinctive' discount rate of between 15 and 30%. Which is why it is extremely easy to persuade people (plural) into huge amounts of debt. It also means that if you are going to have low-to-zero inflation, you are either going to have to strongly restrict consumer credit and mortgages by fiat, or educate people very intensively about debt repayment. Now that's very interesting, if true. It certainly tallies with some of the psychological fallacies that the Behavioural Economics guys are uncovering. Or we could just carry on insisting that the consumer is a divination machine capable of quantifying risk to 10 significant places as Professor Fama's disciples effect to believe. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted February 13, 2012 Share Posted February 13, 2012 bought some butter today. most brands £1.50 a pat. 2008 was when I could buy the brands at £1 or less. No VAT on butter. A lot of Sainsbury's Basics label has doubled in price recently. More and more people switching to them... Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 13, 2012 Share Posted February 13, 2012 A lot of Sainsbury's Basics label has doubled in price recently. More and more people switching to them... http://www.mysupermarket.co.uk/#/shelves/Butter_And_Spreads_in_ASDA.html Quote Link to comment Share on other sites More sharing options...
LiveAndLetBuy Posted February 13, 2012 Share Posted February 13, 2012 In other words, prices are still going up. So... not deflation yet. Yes prices are still going up and yes we do not have price deflation. All the data says is that the difference in prices between now and a year ago is a bit less than it was last month. What I'm trying to get at is that the central banks are currently not able to control price inflation. It is out of their hands. The BoE could have QEd twice as much, or it could have QEd nothing and even put up interest rates, but I doubt that it would have had much effect on the cpi over the last few years. Quote Link to comment Share on other sites More sharing options...
tomandlu Posted February 13, 2012 Share Posted February 13, 2012 Th research I've read suggests that humans have an 'instinctive' discount rate of between 15 and 30%. Which is why it is extremely easy to persuade people (plural) into huge amounts of debt. Can you clarify what this means? Quote Link to comment Share on other sites More sharing options...
Imminent_plunge Posted February 13, 2012 Share Posted February 13, 2012 Very interesting, would love to know the answer, i can still get 4 pints of milk for 99p. I popped into the inappropriately named "CostCutter" at the end of the road over the weekend. 79p for a pint of milk! Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 13, 2012 Share Posted February 13, 2012 Can you clarify what this means? It's a case of going on instinct alone, an average person would make decisions based on.. - Having £100 now being the same as having £130 in a year's time.. - It's OK to borrow £5000 now and pay back £10k over 5 years - If I'm asked to pay back £200k in 20 year's time, it's the same as paying £2k now. Now, just looking at the numbers, the above may look mad, but if you think of what is happening, it isn't. We evolved in a situation where 40 would be old, possessions would be relatively few and physical security minimal. So it's not entirely surprising that our internal system of reckoning regards 20 years away as 'will never happen'. And the result is that a certain percentage of the population can be easily talked into taking on insane amounts of debt, and a larger percentage will take on more debt than is good for them. If this debt is used to bid up prices for everyone, even the prudent suffer. This is why moderate inflation (5-10%) in wages and prices is desirable, in that it helps to counteract people's tendency to over-indebtedness. And it's also why combining very low inflation with lax credit controls virtually guarantees bubbles and debt-slavery. Quote Link to comment Share on other sites More sharing options...
LiveAndLetBuy Posted February 13, 2012 Share Posted February 13, 2012 ...This is why moderate inflation (5-10%) in wages and prices is desirable, in that it helps to counteract people's tendency to over-indebtedness. And it's also why combining very low inflation with lax credit controls virtually guarantees bubbles and debt-slavery. If 5-10% inflation had been the target since 1997 then interest rates would have been lower, and we'd have seen a much bigger bubble, and a lot more debt-slavery. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 13, 2012 Share Posted February 13, 2012 If 5-10% inflation had been the target since 1997 then interest rates would have been lower, and we'd have seen a much bigger bubble, and a lot more debt-slavery. Sounds sensible.. but If you Have an index of 100 in 1997: - 2% inflation gives 135 in 2012 - 5% inflation gives 208 in 2012 - 10% inflation gives 418 in 2012 Essentially, we could still have had a bubble, and a bigger one in nominal terms, but it would have had nothing like the overhang. A person buying in 2005 would see half their mortgage evaporate by 2012. You don't get to keep debt slaves for long in a world of consistent 10% inflation. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted February 13, 2012 Share Posted February 13, 2012 (edited) Yep - and when / if we get back to 2% the media will sell it as the best thing since sliced bread and completely overlook the fact that high inflation previously suffered is 'locked in'. So when things continue to rise at 2% (assuming this magical target can be sustained) the 2% will be based on a far higher unit cost - which will completely be over the heads of most people. Still when we reach 2% all will be well - and we will be able to get back to normal - won't we? He needs several years of undershooting to even things out, the fat ones record has been simply appalling since the introduction of CPI targeting at 2% in March 2005. 100 should now stand at 114.3, but the clueless twit has gotten it at 121.7, a 50% overshoot. Why reward him with a 7 million pension pot with that record, when we would have had almost certainly better results with chimps drawing straws to set interest rates for free. Edited February 13, 2012 by crashmonitor Quote Link to comment Share on other sites More sharing options...
strawbear Posted February 13, 2012 Share Posted February 13, 2012 Very interesting, would love to know the answer, i can still get 4 pints of milk for 99p.Butter and cheese are up because the supermarkets are now having to pay milk producers more . Some supermarket milk prices went up last week by 2p . At the end of last year the farmers and food processors realised that unless they passed on the cost of their increasing inputs many would go out of business . This is particularly true of the dairy industry ,hence dairy products are set for bigger rises as supermarkets pass on their increased costs to maximise their profits. Many items in supermarkets have risen 25% plus in the last 6 months . Bag of 1kg frozen chips last september and november £1-50 now £2, ( you can however still buy a 25kg bag of potatoes from the farm gate for £5) jam up 15% some of the bread i buy now up 15%, cornish pasties up 15p --the list goes on.. Agricultural workers got a below inflation pay rise at the back end of last year of 2.5% and those in the food processing industry got similar awards or even bigger. Any rise in wages is quickly passed down the chain. Wheat is still being traded higher despite bigger than expected yields last year , livestock farmers will not survive unless costs are passed on and supermarkets will of course make sure they dont lose out by increasing prices. Imagine what food prices would be if supermarkets paid a 'living' wage to many of their employees and didnt rely on the government making up wages with tax credits and housing benefit. Food will continue to get more expensive but at least you can buy photographic equipment ,tvs and toasters at up to half price. Huge discounts on clothes ,carpets ,furniture and no doubt dating agency fees will see to it that inflation is falling yet the things you need food ,petrol ,insurance gas ,electricity ,transport costs etc will continue to rise . And if it all kicks off in Iran you can expect even higher surges in the things you need. Quote Link to comment Share on other sites More sharing options...
R K Posted February 13, 2012 Share Posted February 13, 2012 bought some butter today. most brands £1.50 a pat. 2008 was when I could buy the brands at £1 or less. No VAT on butter. So you can buy 80,000 pats of butter with the money you've already saved on the fall in house prices. You lucky (fat) b@sterd Quote Link to comment Share on other sites More sharing options...
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