It's deflation time

molerat

Asda tin peas were 25p / 5 for £1 for ages. Now 32p. By my maths that is an increase.

Chris2685

It's there in blue and white above. Food increased by 1.13% on average.

If you used to spend £100 a week on food, you are now paying £101.13

Doesn't sound like much, but it all adds up.

wolvoman

Chris2685 wrote: »

It's there in blue and white above. Food increased by 1.13% on average.

If you used to spend £100 a week on food, you are now paying £101.13

Doesn't sound like much, but it all adds up.

And by the same token, if you were paying £400 a week on housing (normal in the South-East at least) then you'll be £10.28 better off. In other words - DEFLATION.

izzybusy23

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..

Yes but as soon as the petrol starts creeping up and overshoots the £1 mark, watch as the food stuffs rocket in price again. You can't expect companies to harvest and transport food and us continue to pay low prices if petrol is on the rise...

dazeruk

Just completed the BBC website Personal Inflation Calculator.

http://news.bbc.co.uk/1/hi/business/7669072.stm

I got a figure of 9.6%.

Doubt my own personal circumstances will be taken into account for my next pay round negotiations.

Cannon_Fodder

wolvoman wrote: »

And by the same token, if you were paying £400 a week on housing (normal in the South-East at least) then you'll be £10.28 better off. In other words - DEFLATION.

Around 40% of the country have a mortgage at all.

No idea the proportion paying such a high mortgage, as £1600 a month...and also on a tracker/SVR to benefit from rate drops that are affecting RPI.

Think its safe to say less than 25% of the population are going to see RPI benefits at the moment. CPI still applies to the other 75%.

Ant85

ashapala wrote: »

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.

The Student loans rate will be +0.4% from September

Student loans are not like commercial loans. They are subsidised by Government and attract a low cost interest rate. This interest rate is based on the annual March Retail Price Index (RPI) or the highest base rate of a number of major banks plus 1%; whichever is lower.

To date, the RPI has always been the lower of the two. The reduced bank base rate plus 1% is now lower than the March 2008 RPI so we have presently adjusted the student loan rate to 2%.

GucciMane

CPI and RPI are only consumer and retail. Deflation is occuring in other goods that are not attributed in these indexes. If your not going to spend your earnings on wholly consumer goods, then inflation should not be a problem.

neas

Ant85 wrote: »

The Student loans rate will be +0.4% from September

dont you mean -0.4% ?

Even if you misunderstood the text it would make it +0.6% (which it isnt btw :P).

Ant85

neas wrote: »

dont you mean -0.4% ?

Even if you misunderstood the text it would make it +0.6% (which it isnt btw :P).

Meant +0.6% sorry spaz maths, how have I misunderstood the text?