BBC: Electronic goods costs 'may rise'

WTF?_2

http://news.bbc.co.uk/1/hi/business/7848591.stm

Consumers are being warned that the prices of electronics goods made in Japan are likely to rise, because of the strength of the yen. Japanese electronics firms say the strength of their currency is putting their profits under pressure.
Sony has warned it will make a record loss this year.
And camera and printer maker Canon has already acted by increasing its prices across Europe by about 5%, and as much as 10% in the UK

As expected and predicted.

And it won't just be electronic goods, they're just one of the most obvious items with a sharp increase because of the particular strength of the Yen. There will be plenty of prices creeping up across most imported goods due to the collapse of the pound against almost everything.

Meanwhile, the overall money supply will continue to shrink due to restricted bank lending meaning much less bank credit in circulation. The government doesn't seem to realise that making things more expensive does not equal 'fighting deflation'. With costs of living squeezed, people aren't likely to have so much to save and many are already pretty far in debt so any excess goes to paying that down.

It's certainly a great way to destroy living standards and squeeze those on the breadline to the point of breaking though. Of course, this will all be used to justify the 'need' to print money.

amcluesent

The foreseeable future will be a miserable existence of temping in Mcjobs for the lucky, higher prices of all goods, a taxation tsunami to pay for the 'rescue' of the banks, ever increasing state intrusion from an army of tinpot Mussolini's from the council, rising crime and violence, falling services standards as front-line staff numbers are slashed and means-testing of everything the state provides. I expect the spivs working the black-market will thrive.

socrates

I do not know about rising in the future. They have BEEN rising for the last year anyway.

I was looking for a few electrical items the other day using Kelkoo, Amazon, EBay etc.

I also came across a site that tracks the price of a particular item over the last 12 months. I wish I could remember which one. I am sure someone will set me straight on which site it actually is.

The item was now £170 it has been as low as £120 nine months ago - and that was not the only example.

Now more than ever people need to shop around, there are bargains out there and we have the tools at our fingertips.

itsnever2lateisit?

!!!!!!, I doubt folk on the breadline will be looking to buy consumer electonics anyway. Fair enough a drop in sales will impact on importers, distributors and retailers. The fact that we have been buying them for the last 20 years has already destroyed the lives of those that used to manufacture here in the UK. Next month the last remaining TV factory in the UK will close:mad: I hope that Far Eastern made goods become sufficiently expensive that manufacture restarts here

mewbie_2

As the CPI is measured by giving the same importance to a plasma TV as a loaf of bread - does that mean inflation will rise?

WTF?_2

mewbie wrote: »

As the CPI is measured by giving the same importance to a plasma TV as a loaf of bread - does that mean inflation will rise?

I'm betting it won't fall by anything like the amount we have been lead to believe.

The fact that despite all the factors working in favour of lower prices, it still managed to be 3.1% p.a. in December is an indicator that we are not going to be living in some sort of utopia of cheap prices on everything as the recession and monetary deflation sets in.

Of course, the CPI 'basket' can always be adjusted to produce more favourable results or indeed the govt. can go back to using RPI as an inflation indicator. The purpose of using a CPI target was to minimise the reported amount of inflation by excluding most of the things shooting up in price and including most of the things coming down. Thus interest rates could be kept stupidly low. That idea turned out well......:cool:

I look forward to Gordon telling us soon that RPI is a more useful indicator in light of the global economic crisis which started in America.....

dopester

My bets are on electrical stuff, after a temporary rise in price, crashing even further in price.

The world is being pulled hard in to a deflationary vortex.

Japan, Vietnam, China, and wherever will still want to sell and make a profit. They can't do that if people can't afford stuff, so they aren't selling units - they need to sell, even if it means at lower prices. Their own raw materials and labour, shipping and advertising costs should fall as well.

A balance level will be found, as well as perhaps some slack picked up by making our own stuff, but overall manufacturing is doomed anyway.

There is worldwide manufacturing overcapacity, competition lowering prices,and you are unlikely to make much profit by setting up to add to that manufacturing over-capacity and working lower exchange rates for small advantage - unless you product really is above and beyond superior leap.

It is like all the cars stockpiling up around the world, car-workers being made redundant, and less being sold in car-dealerships. Prices of near everything need to fall.

globalds

Japan Has been holding off this problem for years.
They need a low yen to keep their export driven economy in the black.
Only the more they sell the more pressure it puts on the yen to increase in value.
buying dollars or Euros every time your currency goes up can not be a long term strategy.
Japan's strength may well be that it has been doing for years what the rest of the world is just starting.

Spartacus_Mills

!!!!!!? wrote: »

http://news.bbc.co.uk/1/hi/business/7848591.stm

As expected and predicted.

And it won't just be electronic goods, they're just one of the most obvious items with a sharp increase because of the particular strength of the Yen. There will be plenty of prices creeping up across most imported goods due to the collapse of the pound against almost everything.

Meanwhile, the overall money supply will continue to shrink due to restricted bank lending meaning much less bank credit in circulation. The government doesn't seem to realise that making things more expensive does not equal 'fighting deflation'. With costs of living squeezed, people aren't likely to have so much to save and many are already pretty far in debt so any excess goes to paying that down.

It's certainly a great way to destroy living standards and squeeze those on the breadline to the point of breaking though. Of course, this will all be used to justify the 'need' to print money.

The BBC, of course, being hardly impartial report this as due to the strength of the yen rather than the weakness of Sterling. This, and the rise in prices of goods from Europe is down to the fundamental weakness of our own currency. Sterling is dropping like a stone and this will only increase especially as this govt has been happy to see us stop making these products in the UK and move it overseas.

WTF?_2

Spartacus_Mills wrote: »

The BBC, of course, being hardly impartial report this as due to the strength of the yen rather than the weakness of Sterling. This, and the rise in prices of goods from Europe is down to the fundamental weakness of our own currency. Sterling is dropping like a stone and this will only increase especially as this govt has been happy to see us stop making these products in the UK and move it overseas.

There is a clue in the report, where they say Canon are increasing their prices 5% in the Eurozone but 10% in the UK.

People don't seem to understand the importance of exchange rates in an economy so dependent upon imports. It's not just about paying more on your holidays. There simply isn't going to be the cheap price bonanza that has been hyped - much as I'd like it to be the case since I have no debt and a stack of savings.

itsallagame_2

Guy I know works for large cement company, been laying drivers off etc as not enough cement selling then they put price of cement up about 20% in the new Year !

Suppose that’s supply and demand working, no demand so price is high.

Keep an eye on cement price for ‘greenshoot ‘statements :rotfl: