Think inflation worries are over?

itsnever2lateisit?

Really2 wrote: »

Are you sure on fuel, 65L for me were around £70 this time last year now it is around £63.

So itmust have been around £1.10+ this time last year?

I only use petrol in a mower, about 2 gallons a year:rotfl:

I was referring to heating oil:mad: , and I burn diesel in a car, which hasn't come down by as much, still 102.9p a litre

Really2

itsnever2lateisit? wrote: »

and I burn diesel in a car, which hasn't come down by as much, still 102.9p a litre

98.9P yesterday;)

itsnever2lateisit?

tomterm8 wrote: »

So, unless sterling continues to devalue, why would you expect suddenly to get inflation? At the moment, sterling is strengthening.

The goods on the high street, for example winter clothing was bought by the stores (or contracts signed) before sterling fell. When M&S and the like start selling their spring collections they will have cost the stores substantially more than the outgoing winter collection. It is a matter for these stores to decide how much the consumer may be willing to pay, and may have to take a hit themselves, but there is a limit as to how much they can do. Computers are already rising in price, as these item are not held in stock to the same degree because they become obsolete so quickly. Dell recently increased prices in Euroland by 10%, and by 15% in the UK

itsnever2lateisit?

Really2 wrote: »

98.9P yesterday;)

I think the 4p/litre advantage might be eroded by the fuel used travelling to your garage to get it;)

tomterm8

The point is that deflation is not sector dependant. The official government figures show that last month, the aggregate price level of the economy fell. The reason your electronic equipment is rising is because sterling was depreciated, but it isn't counteracting the general fall in prices because it isn't an important enough sector.

In addition, sterling is now appreciating, and is likely to continue to do so over the next few months unless there is government intervention via quantitative easing. And so, the factor that is causing the price rises you are worried about is actually over in my opinion, and will relatively soon actually be a deflationary force.

itsnever2lateisit?

tomterm8 wrote: »

The point is that deflation is not sector dependant. The official government figures show that last month, the aggregate price level of the economy fell. The reason your electronic equipment is rising is because sterling was depreciated, but it isn't counteracting the general fall in prices because it isn't an important enough sector.

In addition, sterling is now appreciating, and is likely to continue to do so over the next few months unless there is government intervention via quantitative easing. And so, the factor that is causing the price rises you are worried about is actually over in my opinion, and will relatively soon actually be a deflationary force.

IMHO sterling is now undervalued, not because the UK economy has strenghtened, but the markets now realise that Euroland isn't looking too good either. Whether sterling continues its upward path rather depends on politicians keeping their mouths shut:rotfl:

Radiantsoul

StevieJ wrote: »

Tell that to the pensioners and unemployed.

Sure, but on average food does not represent a lot of income. Some groups will be affected to a greater extent.

mewbie_2

Radiantsoul wrote: »

Sure, but on average food does not represent a lot of income...

Food is going up. It is one area where not so easy to find a place to cut down. For those to who it represents a large chunk of their income, especially with interest rates on savings so low, it is the final kick in the teeth.

Actually it is this that makes me the most angry with the current situation. Billions here and there, and was it a 35p rise for pensions a little while back? Can't remember, doesn't affect me yet. But it will do one day.

Coming soon after the zero interest on savings. A nice bit of inflation to erode the real value - 10% a year for a few years will pretty much destroy someone's life savings.

But as long as the younger ones can get back to buying stuff and having fun. Pah!!

dervish

Really2 wrote: »

98.9P yesterday;)

about 30-40p too much.

Why should we have the most expesnive petrol in the world?

Poorly, the answer is that thats so the Labour Party can squander the tax revenues on chav scum and other so called 'good causes' etc...:mad:

MrFonzerelli

dervish wrote: »

about 30-40p too much.

Why should we have the most expesnive petrol in the world?

Poorly, the answer is that thats so the Labour Party can squander the tax revenues on chav scum and other so called 'good causes' etc...:mad:

A high petrol price is better for the environment and the UK trade balance.

The NHS is a good cause.