Deflation or inflation? Vote now

carolt

So, are you experiencing deflation - are you saving loads on your mortgage/rent?

Or do you feel that the government's claims of deflation are a myth, at least as far as you're concerned?

Vote now. And tell us which costs have gone up/down in your experience.

Niksan

deflation

I voted deflation because at the moment that's exactly what I'm experiencing, however it's probably a false positive, as my mortagage has dropped 20% since this time last year, having moved to SVR in december, and the budget isn't till next month.

However, my food shopping is roughly the same, still at £70 weekly shop, and fuel is cheaper than the 118p I was paying, but with energy prices, I have around an extra 10% extra cash a month than before, is that deflation ?

lostinrates

inflation

I'm personlly experiencing inflation. My midweek grocery list (Mon to friday) is depressingly consistant, but the price of whats in the basket has not been. I also buy animal feeds and straight grains, which have risen significantly. Train tickets make up a reasonable percentage of our outgoings, and they have risen. Our petrol consumption went down when petrol prices got so high before, and when they went low they helped, but they are rising again...and I'm driving more and further afield for house hunting! Dog tripe has risen at an alarming rate. All the suppliers tell me its because Eastern Europe is eating more tripe and supplying for the human market comes first. If things get so bad my diet includes green tripe I'll give up entirely.

ETA: I think I'm going to buy oil for our heating in the nex few weeks, that I think will be lower than last oil bill, but I'll have to dig them out to compare.

mystic_trev

What we're actually heading towards (if not already in) is Biflation

http://en.wikipedia.org/wiki/Biflation

ad9898_3

inflation

Definately inflation, unless you have a mortgage on a tracker/svr, I can't see it being anything else.

Heyman_2

deflation

Deflation as we are on a Tracker and have seen our Mortgage payments drop by around £450 a month from peak.

Having said that, the extra money is simply being put aside to either a) attempt to lower our LTV in the case of needing to switch to a fixed rate quickly in the event of interest rate rises or b) subsidise our mortgage payments if we find we can't do a) due to LTV being too high.

Haven't seen our grocery bill go too much higher than normal to be honest, and all other expenses have remained reasonably static.....so far.

Really2

deflation

Substantial deflation on mortgage. Slight inflation on other goods.

To be honest though I still expect inflation to fall espetialy now the £ is fairly stable.

If the £ gets any stronger we will see how in fact the rest of the world has deflated.

To put it in real terms the £ as dropped 20-30% on the $ and the Euro (most of which was Dec)
But we have only see a slight rise in inflation last month (up .2% but it as actualy dropped around 2% in 6 months). It just shows how much deflation as happened and how a week £ is actualy keeping our head above water.

fedupfreda

inflation

Significant inflation - the mortgage has fallen, but only to the level it was before our fixed rate ran out in the middle of last year :mad:

Other expenditure (food, fuel, travel, council tax etc) has all gone up.

Spare cash is definitely shrinking. No money to spend on holidays, plasma tv's or any of the other consumer goods we are supposed to be buying to get us out of this mess (how you can spend yourself out of debt is beyond me ).

Deflation - not in this part of the planet. Maybe in Brown's world - but then MP's always did live by different rules

purch

deflation

Deflation of Asset values :mad:

Inflation of living costs :mad:

................other than that, everything is 'fine and dandy' :T

Generali

inflation

mystic_trev wrote: »

What we're actually heading towards (if not already in) is Biflation

http://en.wikipedia.org/wiki/Biflation

I have my doubts about the idea of biflation. It was a seductive idea while commodity prices were leaping up but that just looks like another bubble now, to me anyway.

For a long time, I've said deflation is on the way. I'm starting to have my doubts as to whether I was right. The RPI is falling fast due to falling mortgage repayments as interest rates come down. CPI and RPIX are both still around 3%.

Time will tell as usual.

Edale

inflation

Food prices are still going up. As we reach/excede 3 million unemployed over the next few months I can see that retailers will have little pricing power and that the risks are to the downside. I agree with Generali that the downside is not as bad as it was. Oil has increased 20% in the last couple of weeks alone, retailers such as Next have said they won't chase business on price, Ford has put the price of its vehicles up several times. Balance that with zero or low wage increases and increased unemployment - I think this will have more influence than anything on prices in general.