It's deflation time

Former_MSE_Guy

This thread is to discuss the following news story:

It's deflation time

Cannon_Fodder

Somewhere around 40% of the population have a mortgage, at all, iirc. And only a proportion of that amount have trackers/SVRs etc, being reflected in the mortgage element of RPI.

So around 60% are still being hit by inflation.

Tesco's record profit is one example of why, for the majority, there is no deflation, yet.

But you can bet employers are already prepared for 0%, or pay cuts, or job cuts, on the strength of RPI, despite it being a "lost" statisitic throughout the Brown chancellor-ship.

Dan:_4

Cannon_Fodder wrote: »

But you can bet employers are already prepared for 0%, or pay cuts, or job cuts, on the strength of RPI, when it was a "lost" statisitic throughout the Brown chancellor-ship.

I got 8% increase from 1st April - so no.

Ingsy

I don't care what statistics say. The cost of living is not going down. Food is not getting any cheaper, and petrol is creeping back up again.

Cannon_Fodder

Dan: wrote: »

I got 8% increase from 1st April - so no.

Congrats. I got 6% in October despite obvious falls in inflation, then made redundant, and now the guys left have been told there will be no pay review, across the 14,000 employees of the company...

14,000 v 2, so far and counting...

LauraW10

Ingsy wrote: »

I don't care what statistics say. The cost of living is not going down. Food is not getting any cheaper, and petrol is creeping back up again.

I don't think any of you blokes on here actually shop:rolleyes:.....food is definitely getting cheaper. Chicken, for example, is down 11% in Sainsburys - the cost of cereal has fallen through the floor, etc etc

Anyhoo, forget anecdotal evidence - the figures behind the headline rates show that food prices are falling..

chucky

Cannon_Fodder wrote: »

Congrats. I got 6% in October despite obvious falls in inflation, then made redundant, and now the guys left have been told there will be no pay review, across the 14,000 employees of the company...

14,000 v 2, so far and counting...

sad to here of the job loss - hopefully you will find something soon.

any potential jobs on the horizon?

Mr_Mumble

LauraW10 wrote: »

Anyhoo, forget anecdotal evidence - the figures behind the headline rates show that food prices are falling..

Um:
http://www.statistics.gov.uk/pdfdir/cpi0409.pdf

CPI rate for food and non-alcoholic beverages is 10.5%
RPI rate for food is 10.3%

Rochdale_Pioneers

LauraW10 wrote: »

I don't think any of you blokes on here actually shop:rolleyes:.....food is definitely getting cheaper. Chicken, for example, is down 11% in Sainsburys - the cost of cereal has fallen through the floor, etc etc

Anyhoo, forget anecdotal evidence - the figures behind the headline rates show that food prices are falling..

Absolutely. There are some absolutely stupid deals on in the supermarkets if you open your eyes when you're in there. If you buy Heinz Beans and only Heinz Beans and don't go in when there's a deal on then yes I'm sure the price has gone up.

But why not do what causes suppliers like me major headaches and be a brand !!!!! - only buy things that are on a deal?

Mr_Mumble

The reason RPI is deflationary:

System

Including housing costs seems like "cheating"

Edit: Not cheating, just hiding the fact that everything else is costing more.