'The recession’s end means HIGHER prices.' blog discussion

RichOneday_2

Generally the supply/demand rules do hold true as you say, Martin, and you would therefore expect prices to rise as an economy emerges from recession and companies look to rebuild their balance sheets.

However, there can be a rather long lag to this process.

In previous recessions it has been the case that suppliers of goods/services have found it difficult to push prices back to a pre-recession levels because of the new competitors that have emerged from the recession in a much leaner, and therefore competitive, state. Often these are phoenix type companies which went into the recession with high levels of debt and came out the other side essentially intact, albeit with a different name, but without any debt.

So, I guess you dont know you're out of a recession until 6-12 months after all the ingredients are in place to end it.

The_MoneySavingKid

456789 wrote: »

Yes prices are likely to go up - but also people are likely to have more job security etc. ? so it isn't all bad

You can't really put a value/measurement on job security really though.

ZTD

Neither is true - both are true...

When the recession is over (if you drop off a cliff and bounce off the side does that mean your fall is over??) the pound should "strengthen". This will make imports cheaper. However things made in this country (both of them) should become more expensive for reasons Martin has already covered.

So things will become more expensive and cheaper at the same time, just in the same way as they are becoming cheaper and more expensive at the same time right now.

And for exactly the same reason: different currencies heading to worthlessness at differing rates.

fezkhan

HI, i HAVE SEEN AN ADV ON MYSTERY SHHOPPING,
ADV BY

Karen Somers

UK Mystery Shopper Employment Agency

THERE IS A FEE OF £34.

IS it genuine or scams.

fezkhan

HI ,
I, i HAVE SEEN AN ADV ON MYSTERY SHHOPPING,
ADV BY

Karen Somers

UK Mystery Shopper Employment Agency

THERE IS A FEE OF £34.

IS it genuine or scams.

george_1

The vat increase should hopefully help things! i work for a supermarket and notice the prices of things can change dramatically on a daily basis. One day a tv is £399, next day £349 etc.