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Shop Price Deflation Highest For 6.5 Years

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Misleading article. Inflation is STILL positive but dropping. That is NOT deflation

Hmm, food prices are rising more slowly, but prices of non-food items had fallen. Overall price have fallen:

Overall shop prices reported annual deflation for the third consecutive month in July, falling 0.5% from 0.2% in June. Food inflation fell to 2.2% in July from 2.7% in June. Non-food reported annual deflation of 2.1% in July from 1.9% in June

The forex factory graph next to this item shows price deflation too.

Edited by Guest

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Food is well manageable if you look for deals and prepare meals from scratch, the runaway inflation is a myth IMO. I am also seeing deflation in rent (down £50 p.m) and alcohol (in particular single malt whiskey which used to sell at a premium)

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Food is well manageable if you look for deals and prepare meals from scratch, the runaway inflation is a myth IMO. I am also seeing deflation in rent (down £50 p.m) and alcohol (in particular single malt whiskey which used to sell at a premium)

You have to compare the price of the raw ingredients and the fuel to cook them in order to work out inflation / deflation in meals from scratch.

It's no good comparing the price of ready meals in 2005 with the price of similar meals from scratch in 2013. Apples and oranges.

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You have to compare the price of the raw ingredients and the fuel to cook them in order to work out inflation / deflation in meals from scratch.

It's no good comparing the price of ready meals in 2005 with the price of similar meals from scratch in 2013. Apples and oranges.

The point I made was that food is not in runaway inflation from my point of view, whether it is ready meals or ingredients it will eventually have the price cut to sell? And in the globalised world there is no comparison with "inflations" of the past? What is your take on the deflation in rent and whiskey?

Edited by dances with sheeple

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You have to compare the price of the raw ingredients and the fuel to cook them in order to work out inflation / deflation in meals from scratch.

It's no good comparing the price of ready meals in 2005 with the price of similar meals from scratch in 2013. Apples and oranges.

I was talking to an employee of one of the big companies which makes premium laundry powder; he was saying that the difference in a particular product sold today compared to pre-crisis is marked despite it still being the same brand in the same box. The quantity and number of pricier ingredients eg colour fasteners, whiteness additives etc etc has been slashed massively. If you think your washing powder has got worse in the past few years, it probably has.

Edited by cheeznbreed

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I was talking to an employee of one of the big companies which makes premium laundry powder; he was saying that the difference in a particular product sold today compared to pre-crisis is marked despite it still being the same brand in the same box. The quantity and number of pricier ingredients eg colour fasteners, whiteness additives etc etc has been slashed massively. If you think your washing powder has got worse in the past few years, it probably has.

Not to mention size deflation. See Mars bars.

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Food is well manageable if you look for deals and prepare meals from scratch, the runaway inflation is a myth IMO. I am also seeing deflation in rent (down £50 p.m) and alcohol (in particular single malt whiskey which used to sell at a premium)

It 's easily managed if you know what to buy and how to prepare it. Many people don't. My food shopping is now pulses, veggies, spices, fruit and yoghurt with some fish thrown in every now and again. Prices have gone up massively but changing my eating habits has brought my food bill down over the past few years.

It also helps to take advantage of special offers on washing powder, loo roll, toothpaste etc, not waiting until you're nearly running out and have to buy at full price.

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I was talking to an employee of one of the big companies which makes premium laundry powder; he was saying that the difference in a particular product sold today compared to pre-crisis is marked despite it still being the same brand in the same box. The quantity and number of pricier ingredients eg colour fasteners, whiteness additives etc etc has been slashed massively. If you think your washing powder has got worse in the past few years, it probably has.

Unilever were a bit unhappy last week about their prospects worldwide - I suppose they're the biggest canary of the lot.

Anyway, the point I want to make about washing powder is that its value can be picked apart by a budgeting consumer - eg. whitening and deodourising is done just as well by the dirt-cheap sodium bicarb, and the bit of degreasing needed on top of that can be done by a little soap that doesn't blow the washing machine hinges off. In other words, people drawn by the electromagnetism of Wonga can find plenty of deflationary space in the atom of an overpriced product.

Same goes for home-cooking over ready-meal/take-away, bangernomics over HP vehicle, google search over paid-up content, etc. It's a trap sprung by excessive private debt. The only place this deflation refuses to be recognised is in the cost of UK accomodation - and that won't last.

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I always imagine Mervyn used to pop down the shops with his magic shopping basket (itself manufactured in poorest part of China found capable of doing so) whenever shops were slashing prices because pay or rent quarter day was just round the corner.

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Unilever were a bit unhappy last week about their prospects worldwide - I suppose they're the biggest canary of the lot.

Anyway, the point I want to make about washing powder is that its value can be picked apart by a budgeting consumer - eg. whitening and deodourising is done just as well by the dirt-cheap sodium bicarb, and the bit of degreasing needed on top of that can be done by a little soap that doesn't blow the washing machine hinges off. In other words, people drawn by the electromagnetism of Wonga can find plenty of deflationary space in the atom of an overpriced product.

Aren't modern detergents a lot more effective at cleaning than soap? Does soap work effectively in a washing machine?

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Aren't modern detergents a lot more effective at cleaning than soap? Does soap work effectively in a washing machine?

Beauty of it is - just google and experiment! Whatever suits ya.

Deflationary New World.

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Beauty of it is - just google and experiment! Whatever suits ya.

Deflationary New World.

I've Googled now.

People are grating bars of soap with a cheese grater and mixing the shreddings with bicarb and borax! Amazing!

I'm pretty sure, though, it costs us about 5p a wash at the moment, so I'm not sure I will do this.

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I was talking to an employee of one of the big companies which makes premium laundry powder; he was saying that the difference in a particular product sold today compared to pre-crisis is marked despite it still being the same brand in the same box. The quantity and number of pricier ingredients eg colour fasteners, whiteness additives etc etc has been slashed massively. If you think your washing powder has got worse in the past few years, it probably has.

ah, but at least the TV adverts in the future can say "new and Improved version" every 6 months for the next few years again as in effect it may well be just that.

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I've Googled now.

People are grating bars of soap with a cheese grater and mixing the shreddings with bicarb and borax! Amazing!

I'm pretty sure, though, it costs us about 5p a wash at the moment, so I'm not sure I will do this.

s

You're pricing each load! And when your knowledge of cheese-grating shows a greater yield ...

That's a big problem for Unilever's penny profits.

I think the ease of working this stuff out on the internet is a permanent brake on profiteering. Just need to advance it into the financial industry. However the UK mortgage market is hard to crack.

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Food is well manageable if you look for deals and prepare meals from scratch, the runaway inflation is a myth IMO. I am also seeing deflation in rent (down £50 p.m) and alcohol (in particular single malt whiskey which used to sell at a premium)

God, wish I was, rents are up around here. 2 bed flats were on for about 550-600 a couple of years ago, now I can't see many/any for under 700. And there seems to be no shortage of tenants, they all go very quickly.

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God, wish I was, rents are up around here. 2 bed flats were on for about 550-600 a couple of years ago, now I can't see many/any for under 700. And there seems to be no shortage of tenants, they all go very quickly.

The financial economy is going gangbusters thanks to QE/ZIRP/FLS etc. A tsunami of liquidity racing round the world in search of yield. If you're not an asset holder then you're going to be on the receiving end. What's the alternative, live on the streets?

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I find it hard to call. We're saving more money than before and eating more basics (cooking from scratch 6 times a week rather than 4, less prime meat, more stewing cuts, more rationing of treats). Deflation seems to be a consumer choice as much as a price-led function. It doesn't feel like inflation so much as realism...

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I find it hard to call. We're saving more money than before and eating more basics (cooking from scratch 6 times a week rather than 4, less prime meat, more stewing cuts, more rationing of treats). Deflation seems to be a consumer choice as much as a price-led function. It doesn't feel like inflation so much as realism...

This is very true....people can help create their own inflation, some will spend every penny and more that they earn, the amount they earn is irrelevant....others will only spend what they earn and not a penny more....some will earn lots and save lots finding innovative ways of spending less without feeling they always need more or to earn more, so that they can one day cut down on their earning, earn less and still live like they have always lived but then have extra time to do what they never got the chance to do when earning more whilst they can still do it and enjoy it. ;)

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This is very true....

In a wider context, another aspect is that the cost of shelter is almost non-existent for anyone who bought pre-2000 (and hasn't mewed). They get a real benefit, since the cost of other essentials has to be affordable for those with housing costs. The normal expectation is that non-essentials will fall in price, but what we may be seeing is something more skewed to reflect this two-tier dynamic.

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