Thursday, September 27, 2012

Mervyn says it’s dropping to 2%

Inflation could near double digits says Jupiter's Chatfeild-Roberts

"Inflation could near double digits over the next five years according to Jupiter Asset Management's chief investment officer".

Posted by alan @ 05:56 PM (1716 views)
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6 thoughts on “Mervyn says it’s dropping to 2%

  • general congreve says:

    Four cans of Tetley’s, last week was £3.49, now £3.99 in my supermarket, many of the other prices have gone up too.

    I make that 14.3%, not sure of the time frame, but that is one massive jump.

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  • No, no, inflation will drop so your savings will be protected. No really, Mervyn King has an excellent record of keeping his word on these things.

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  • general congreve says:

    Deflation be damned, unless you’re valuing prices in gold currency. Had enough yet? Or is there still more fight left in you? I don’t mind landing more blows if there is. 😉

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  • I bought a 22″ TV/DVD combo for the spare bedroom from Tesco a few years ago for £190…reduced from a previous price of about £220. Tesco are selling similar ones now for £111.

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  • general congreve says:

    @4 – Do not confuse the deflationary cost savings of economies of scale and maturing technology, especially on non-essentials, as anything to do with monetary inflation. As such, those cost savings overwhelm inflationary effects, and can therefore give an image of money improving in purchasing power, when it is not. If we hadn’t had monetary inflation in the last few years, you’d be buying that £111 TV for about £70 right now.

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  • Well said General C.

    Non-essential or discretionary purchases are the things will see downwards pressure on price. Retailers are chasing every £1…especially to sell off goods that are time critical regards technological obsolescence or styling. Unsold inventary gathering dust in warehouses… must give them nightmares.

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