A stern warning from a central banker

Hereward

shortchanged wrote: »

Isn't that what I have just said.

Kind of. Replacement technology tends to be expensive at first (see the PC example) and get's cheaper as more of them are produced.

shortchanged_2

Hereward wrote: »

Kind of. Replacement technology tends to be expensive at first (see the PC example) and get's cheaper as more of them are produced.

That is what I am saying. It is progression. There is always newer, more expensive technology coming out that negates the drop in price of the older technology.
The older stuff eventually becomes defunct as nobody wants it and the newer stuff becomes cheaper as it becomes mainstream.

It is nothing to do with deflationary factors that bendix is referring to.

Percy1983

Had the discussion about technology before and in some ways compare a topend computer now to a topend computer 25 years ago and the cost has increased, yes the performance of a cheap computer now will out perform it but in short it is the price of the top end you should use for comparison.

With that I can confirm video games are doing well, at points in the past they have been £50-£60 and after many years of inflation they have got to £40-£45.

Eitherway to say you should pay more for houses because your TV will cost a bit less is a bit absurd.

StevieJ

FTBFun wrote: »

Indeed - my current TV is a 26" Samsung HD LCD which cost £350 3.5 years ago (it was a good price then).

Now you can get a 32" for £250.

Paid about £600-£700 for a big 28inch grey monster JVC TV many years ago, still got it :eek:

shortchanged_2

So what is the norm these days. Many people wouldn't consider anything less than a 40" tv now, hence why you can pick up a 32" tv for next to nothing these days.

It's called market manipulation.

Graham_Devon

I think I've only recently noticed prices going up.

I'm not going to include things such as electronics, as you don't need to pay for electronics every month to keep a roof over your head.

But car insurance increased by a good 35% this year, and yes, I shopped around, many have been hit with this big increase. It's basically changed from £17.80 a month to £36.70. That's not 35%, because of deposit differences after moving to another company.

Food has definately risen in price, and I'm starting to notice it now. I'm comparing to 3-4 years ago, but was looking for some tesco value bread, needed it for a recipe I wanted to try (went wrong, btw). I remember it being 17p only 3-4 years ago, as I used to buy it for toast. It's now just shy of 50p. Many things are the same.

Fuel is an obvious one and the one that has the most impact for me personally.

I was also able to compare my yearly usage in electricity this year, as it was the first year I'd not swapped suppliers. I'd used less this year, through trying to cut down. However, my total cost over the year period was up £92, equivalent to approx 9%.

And, it looks to me, as if second hand diesel cars have gone up in price. Seemed so many of the car I'm looking for around 6k a few months ago. Indeed, went to look at a couple. Not a hint of these cars now, the equivalent seems to be at least a grand more, across all traders.

Graham_Devon

bendix wrote: »

Doesn't matter what it's called. It has resulted in costs plumetting.

The point being that it's anti-inflationary.

It hasn't.

People are not comparing like with like. Instead, people prefer to look at how much their TV cost 3 years ago, with how much it costs now.

A 3.5 year old TV now, especially the 26" used (which are always more expensive than bigger panels) is now old technology.

Compare a FULL HD with freeview HD built in 26" TV today, with the 26" HD ready TV 3 years ago.

http://www.amazon.co.uk/dp/B003DNSJ2C/ref=asc_df_B003DNSJ2C1927254?smid=A3P5ROKL5A1OLE&!!!!!googlecouk06-21&linkCode=asn&creative=22206&creativeASIN=B003DNSJ2C

£332.

It's completely unfair to compare newish technology 3 years ago against the lowest technology on the market today. Compare like to like, and the results are completely different.

kabayiri

Electronics pricing is an easy one.

We are living in an age where skillful chinese people will obligingly spend 10 or 12 hours a day making every electronic device you could wish for.

They will do this for a fraction of wages Westerners would accept.

They also stick half of their earnings into government backed savings, thus allowing the Chinese gov to lend it to a credit hungry Western world to buy yet more electronic goods....and the cycle continues.

But...they accept this situation now for a better tomorrow. Already, unrest in companies like FoxConn has seen wage increases there of 25% and more.

Things can and will change, and when Western companies are no longer able to dictate pricing, we should understand that the price we have to pay may increase.

whatyadoinsucka

tesco selling acer one aspire 160gb d250 for £138 this week, a year ago these would have been nearer £250

pepsi in the vending machine has gone from 80 pence to £1.10 now thats inflation !!

although they brought in the 600ml bottle a few months ago to replace the 500ml
we'll be getting ounces next

shortchanged_2

whatyadoinsucka wrote: »

tesco selling acer one aspire 160gb d250 for £138 this week, a year ago these would have been nearer £250

So what do you think the reason for that is?