Deflation? For whom?

beecher

chucky wrote: »

i can't get my head around people worrying about 20 pence extra on a pint of milk when they are saving hundreds of pounds on something else.

i know this may reflect my personal situation but i'm sure there are many others like me (cue Mewbie).

Those saving hundreds of pounds on their mortgage will maybe be overpaying as much as possible as they will be fearful of interest rates rising and many will be over 90% LTV and worried about getting new deals.

I'm saving £70/month on my mortgage but still worry about the extra cost of food/travel/utilities as I'm aware that my mortgage will increase at some point in the future. I don't count it as money saved at all. It might not make much sense but I don't want to get used to spending that money.

chucky

beecher wrote: »

Those saving hundreds of pounds on their mortgage will maybe be overpaying as much as possible as they will be fearful of interest rates rising and many will be over 90% LTV and worried about getting new deals.

I'm saving £70/month on my mortgage but still worry about the extra cost of food/travel/utilities as I'm aware that my mortgage will increase at some point in the future. I don't count it as money saved at all. It might not make much sense but I don't want to get used to spending that money.

totally agree- repay debt is priority.

i'm questioning the being so focused on the price of milk or a load of bread compared to savings elsewhere. i also appreciate the price of food consumed by a family too.

many people may not see them but a large number do.

littlemrtinkle

Been told electrical goods are flying down in price, so we will all be sitting at home with 65" widescreen super flat tvs, but can't afford any popcorn or food to go with it.

Wookster

littlemrtinkle wrote: »

Been told electrical goods are flying down in price, so we will all be sitting at home with 65" widescreen super flat tvs, but can't afford any popcorn or food to go with it.

That'd only be old stock.

New stock, imported at current exchange rates is somewhat more expensive.

beecher

chucky wrote: »

totally agree- repay debt is priority.

i'm questioning the being so focused on the price of milk or a load of bread compared to savings elsewhere. i also appreciate the price of food consumed by a family too.

many people may not see them but a large number do.

May it seems more real because you're paying for it out of your purse?

I get your point though - I felt myself focussing on the money lost from interest rate cuts til I realised how much more I was saving from my mortgage cut. It is psychological - we'll see the same when the VAT increases again. When my Sky/mobile/broadband bills were cut I scoffed 'that'll make no difference'. When they go up I'll moan

ad9898_3

Just watched sky news,

Meat up 15%+
Vegetables 18%+
Energy costs 22%+

A combination of some or all of the above 3 items are essential, or we die. I wonder what Crash thinks of these figures in his 'deflationary head'.:rolleyes:

Just to edit...... although not essential Ford have just put the price up of an average car by £2000.

itsnever2lateisit?

ad9898 wrote: »

Just watched sky news,

Meat up 15%+
Vegetables 18%+
Energy costs 22%+

A combination of some or all of the above 3 items are essential, or we die. I wonder what Crash thinks of these figures in his 'deflationary head'.:rolleyes:

Just to edit...... although not essential Ford have just put the price up of an average car by £2000.

At last! Signs that sterling devaluation is working. As I see it Ford would rather sell fewer cars in the UK than selling at a huge loss. Will be interesting to see where ford are in the sales charts in a couple of years time, if the likes of Honda/Nissan/Toyota can hold their prices or at least a smaller increase given the UK content of their cars

tomstickland

I was a bit confused when they were talking about deflation when I can see clear inflation in the cost of living over the last year. Then I read the definitions and see the figure includes mortgage costs. Well, amazingly, many people have fixed rate mortgages so lower rates don't make any difference. Savings rates are low too.

tomstickland

ad9898 wrote: »

Lets face it Wooky, there are way to many VI's in the media to get to the bottom of the situation. They probably know the questions to be asked, but if the answers were implemented they would be up a creek with no paddle.:rolleyes:

Newspapers and journalists in general exist in a cosy bubble. Occasionally someone will fall out of favour and then someone can write a nasty article about them.

silvercar

The big gain for some is the fall in the monthly mortgage payment, but to be benefitting from that reduced payment you must be watching your home fall in value.

Swings and roundabouts.