If there's a recession on, why's everything going up in price so much!?

Max_Headroom_3

I've bought a couple of AV bits and pieces recently. And a couple of things have become apparent.

One is that everyone seems to be out of stock of everything. This isn't deliberate policy, when you speak to suppliers they're desperate to get their hands on stock to sell, they have people waiting.

The other is that stuff is shooting up in price! Amps that were £300 are suddenly £350, other bits are going up by 10-15%, even 20%.

Now I know that the exchange rate has a lot to do with this. If wholesalers have to pay more to import then they have to charge more. But assuming stuff is retailed at the highest sensible price they feel they can achieve to maximise turnover and profit, surely there isn't much room to increase?

And why is everyone out of stock and clamouring to get it? You'd have thought the reverse would be true.

Expensive watches (not that I can afford one) are another example. Rolex have gone up 20% in less than a year!

Recession, what recession..?

swtchick87

that is soo true, i went into asdas and everything has shot up.. i kept thinking that people earning minimum wage cannot possibly be able to buy neccesary items due to this. its disgusting!!

Pobby

Yes there are huge price increases due to the weak pound. In my industry 50% increases are not uncommon.

Really2

It is indeed all to do with the exchange rates. On imported goods.

I don't know why people think goods should get cheaper because there is a recession on.

If peope buy less and less the COGS will cary on going up.

bo_drinker

The reason we need to start to make things again and sharpish. Probably by the time we wake up it will be too late, we are exporting but not enough. Meanwhile the Chinese are here to try to get us to trade more with them????????? Is it me??

robin_banks

20 million jobs gone in last 12 months in China.

amcluesent

The causes of stagflation (stagnant economy with inflation) aren't so clear.

If you accept the money as debt argument, then the inflation is a consequence of having to raise prices due to the burden of debt repayment. This has to happen even when demand is weak!

That's on top of any increase in prices due to exchange rates.

Going out of stock isn't surprising, there was a massive drop in container shipments from China starting mid 2007.

I posted before Xmas that the smart move would be to buy your imported plasma TVs etc. from the stock then being sold by stressed shops - the chance won't come again!

bo_drinker

robin_banks wrote: »

20 million jobs gone in last 12 months in China.

Reason why they are here trying to drum up business and sell us even more tat. Meanwhile our firms are going down like flies. I wouldn't have bothered having them here,

robin_banks

bo_drinker wrote: »

Reason why they are here trying to drum up business and sell us even more tat. Meanwhile our firms are going down like flies. I wouldn't have bothered having them here,

Amongst other things, a foreign trip like this is a good bit of PR for both governments appearently.

Pobby

I work in an industry that had that used to produce in the UK. It still does to a very minor degree on high end products but mainly it imports from the Far East.

Eskimo12345

Max_Headroom wrote: »

The other is that stuff is shooting up in price! Amps that were £300 are suddenly £350, other bits are going up by 10-15%, even 20%.

Too right mate, Arcam recently announced their prices were going up by 30% for most lines - although their agressive price slashing of EOL stuff is still in full swing, and I'm torn between an AV350 or a projector at the mo

If you don't mind me asking, what did you pick up?