UK Economy - Inflation or Deflation?

pjbltd

Inflation or deflation: which is it to be?

http://www.guardian.co.uk/money/2009/mar/28/inflation-deflation-uk-economy

Midas

I would suggest that we are experiencing/heading for a nasty combination of both: deflation in asset prices, including, but not restricted to land, commerical property and residential property; and inflation in consumer basics, especially food and fuel.

Lokolo

^^ as above :cool:

pjbltd

Thanks Midas, that's a great point and didn't think of it that way.
Holding NS&I Index Certs would be pointless in that situation then? Because although RPI might be bumped up by the inflationary pressures of food etc. it would still be kept low due to small interest rate payments (assuming interest rates would be kept artifically low).
i.e. CPI and RPIX would go up but not RPI

Is it possible to get exposure to CPI and RPI?

ctdctd

pjbltd wrote: »

Is it possible to get exposure to CPI and RPI?

Buy a house and fill it with tins of beans?;)

pjbltd

ctdctd wrote: »

Buy a house and fill it with tins of beans?;)

Lol!
Assuming buy the beans now and the house later?

Just_landed

As the Great Man himself wrote in a news paper article last week GET your postage stamps before the 1st of April because they are going up in price first class from 36p to 39p & second class from 27p to 30p. For those in DENIAL thats 8% & 11% rise respectively Inflation or what ?
:eek: :mad: :whistle:

Lokolo

Just_landed wrote: »

As the Great Man himself wrote in a news paper article last week GET your postage stamps before the 1st of April because they are going up in price first class from 36p to 39p & second class from 27p to 30p. For those in DENIAL thats 8% & 11% rise respectively Inflation or what ?
:eek: :mad: :whistle:

When was the price last raised?

agsnu

Lokolo wrote: »

When was the price last raised?

April 2008, from 34p to 36p (~6%) First Class, 24p to 27p (12.5%) Second Class.

Also went up in April 2007 (32p to 34p for a First Class stamp), and in April 2006 (30p to 32p).

uk_steve

Just_landed wrote: »

As the Great Man himself wrote in a news paper article last week GET your postage stamps before the 1st of April because they are going up in price first class from 36p to 39p & second class from 27p to 30p. For those in DENIAL thats 8% & 11% rise respectively Inflation or what ?
:eek: :mad: :whistle:

:eek: thats just shocked me

malik999

Just_landed wrote: »

As the Great Man himself wrote in a news paper article last week GET your postage stamps before the 1st of April because they are going up in price first class from 36p to 39p & second class from 27p to 30p. For those in DENIAL thats 8% & 11% rise respectively Inflation or what ?
:eek: :mad: :whistle:

Glad to hear it. It might reduce my junk mail.