It's deflation time

john.xs

the whole thing is a con. prices rockreted so much over last couple of years that we have been brainwashed into thinking prices have plummeted .one simple example is chocolate bars like rockys etc.if you could buy at 7p or less for individual bar you were doing well.even when the supermarkets have bogofs and allegedly mega price cuts offers they are never that cheap.

heinz sausage and beans were 64p for ages.around 59p i think for a long period before that.they recently rocketed to sub £1 eek! they have currently been slashed to 75p in cheper supermarkets.64p to 75p is not deflaton in my book.
i could probaly come up with many more like for like examples !

dervish

The prices of ordinary groceries is INFLATING and not deflating.

Meat and dairy prodcuts are stillr eally high and not declining.

LauraW10

Mr_Mumble wrote: »

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%

"Main contributions to the change in the CPI 12-month rate

There was also a large downward contribution from food and alcoholic beverages. the largest effect came from vegetables where prices fell more than a year ago across a range of products, for example cucumbers.Small effects came from fruit with prices falling more than a year ago, where bread and cereals fell this year"

"Main contributions to the change in the RPI 12-month rate

Food where prices overall fell this year . The effect came from across a range of seasonal and non seasonal products."


Anyhoo, these figures are YoY and I defintely know that food has fallen a lot in the last quater....

neas

I wonder if the thousands of student loans will all now decrease by 0.4% over the 2009/2010 period? :P

lostinrates

I buy a lot of basics from the agricultural industry, for animal feed (as opposed to things that have been through 'processes' more complex for human food)

Tripe is increasing at a dramatic rate, and is less available. Suppliers tell me this is because people are increasing their consumption of offal in eastern europe, due to financial pressure.

Grains have not decreased in price, at point of sale through feed merchants at least, in either their raw form or manufactured into balanced feeds. Hay/Haylage straw is more stable generally: but very weather dependant. Last coule of summers have been very wet. A lot of our big bale haylage was just not good. It was at least, the same price as last year.

My Monday-friday grocery bill is relativelygood guideline for me becuase I eat roughly the same thing (for health reasons not lack of imagination) on weekdays. My mon-firday basket is NOT cheaper: it has become more expensive over the last couple of years.

itsnever2lateisit?

While I do not doubt the figures, they do not take account of the skew that takes palce when prices rise. If you are paying more for the 'essentials' then you have less to spend on other things. Hands up, how many people have reduced their motoring in the last year? If your pint of milk has gone up 10p that's 10p less to spend on something else.

I have certainly noticed that the roads are quieter at the week-ends, which suggests to me that people are reducing the number of leisure journeys they undertake

Mr_Mumble

Laura, food prices are seasonal, you can't compare strawberry prices in January and July for a sign of deflation! You have to use year on year not month on month figures.

The ONS year on year commentary. RPI:

The largest contribution to the 2.9 per cent 12-month rate came from food and non-alcoholic beverages (1.1 percentage points). Overall prices rose by 10.5 per cent with the largest rises recorded against meat and vegetables.

CPI:

The largest upward contribution to the 12-month rate came from food which contributed 1.1 percentage points. Overall prices rose by 10.3 per cent with the higher price rises recorded against beef, lamb, pork, processed fish, tea, sugar and preserves, and vegetables.

Chris2685

Deflation?
Wallet says no.

Wookster

Mr_Mumble wrote: »

The reason RPI is deflationary:

Looks overwhelmingly like inflation to me.

ashapala

neas wrote: »

I wonder if the thousands of student loans will all now decrease by 0.4% over the 2009/2010 period? :P

I hope so.

For the new loans we have always been told that we will only ever pay back the same value as we borrowed.

If the value of the loan is devaluing then we have to have our loans decrease, or we are paying back more than we borrowed according to their terms.