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SarahBell

Tesco And The Ons Figures

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Tesco said price deflation in Britain was running at 1.4%. That figure contrasts sharply with the official inflation figures released on Tuesday, which showed food prices rising by 1.5% in May. Mr Higginson said: "We have long since stopped trying to understand the [Office for National Statistics'] figures. They are a mystery to us." He said consumers were in "scrimp and splurge" mode.

http://business.guardian.co.uk/story/0,,17...c=ticker-103704

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they really are arrogant b*ggers

do they think they are the UK?

and if their price deflation of 1.4% equates to a 10% drop in the quality of their products, I don't count that as deflation!

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I don't buy food at Tesco, but lately I've mostly been buying things on 'two for one' offers.

Does that mean there's price deflation, or does that mean that inflation is so high that I'm saving money wherever I can?

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I don't buy food at Tesco, but lately I've mostly been buying things on 'two for one' offers.

Does that mean there's price deflation, or does that mean that inflation is so high that I'm saving money wherever I can?

It just means you're stingy. ;)

What I actually think is that a lot of retail chains have got themselves in a weird situation. They discount so much and so heavily on some goods, that they have made it feel like you should never have to pay the "full price" - so even if prices have risen, we expect to be able to go and get three for two, two for one, etc. So all the "full prices" go up, but they struggle to increase the actual prices they are receiving.

Not really sure what that means about inflation, but it might be part of the reason for Tesco's recording lower prices.

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Tesco said price deflation in Britain was running at 1.4%. That figure contrasts sharply with the official inflation figures released on Tuesday, which showed food prices rising by 1.5% in May. Mr Higginson said: "We have long since stopped trying to understand the [Office for National Statistics'] figures. They are a mystery to us." He said consumers were in "scrimp and splurge" mode.

http://business.guardian.co.uk/story/0,,17...c=ticker-103704

Actually that is rather interesting, Food and Non alc Bev did rise 1.5% in May, and they have a weighting of about 10% of the CPI, which means most of the CPI rise from 2% to 2.2% was because of food.

The whole annual food is only 1.1% so that does seem a large monthly increase, especially as the Retail sales deflator didn't was still firmily negative.

Perhaps it will be reversed next month ;)

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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