CPI FALLS to 4%

StevieJ

Generali wrote: »

There is still a trade deficit, it's gotten smaller this month.

The UK has run a trade deficit since the 1970s.

You mean since the Tories gained power in 1970, I think Harold handed them a nice positve balance

pbouk

wotsthat wrote: »

There hasn't been a realistic price war so far - Tesco, at least, have been able to pass on increased costs AND expand margins over the last few years.

Maybe what's happening now is it's becoming more difficult to do this and so they are having to moderate their price increases or suffer a decrease in demand.

i am a manager at one of the big 4 supermarkets and i am a fully aware of the price war between supermarkets. branded labels are desperate for us to promote their products by offering BOGOF and buy 1 get 2 free deals etc. so there is a price war between supermarkets and suppliers to them.

Living_proof

My food bill is certainly not going up, but it's a result of comparative shopping and bulk (ish) buying when things are on offer. I think we all have to accept that we will have to consume less or borrow more to keep up the same standards as we are used to.

Here, we are consuming less, or buying different qualities and cuts.

wotsthat

pbouk wrote: »

i am a manager at one of the big 4 supermarkets and i am a fully aware of the price war between supermarkets. branded labels are desperate for us to promote their products by offering BOGOF and buy 1 get 2 free deals etc. so there is a price war between supermarkets and suppliers to them.

It's a phoney war. If Tesco are managing to pass on price increases and expand margins at the same time then the other 3 aren't managing to compete or they are buncing as well whilst making nice noises about competing.

The consumer isn't forcing them to compete but the inflation figures indicate that this might be changing.

doire_2

ITV news said the figure only fell because no-one is spending any money in the shops. Shops are struggling so have to slash prices. Not exactly great news for the high street

Thrugelmir

doire wrote: »

. Not exactly great news for the high street

Plenty of margin on imported product. The UK consumer has been overpaying for years.

nicko33

doire wrote: »

ITV news said the figure only fell because no-one is spending any money in the shops.

Does that mean "spending is down a little bit"?
Maybe people are just not buying stuff they don't need any more. Being more responsible with their money.
That's not a bad thing. It's a good thing.

wherediditallgothen

B_Blank wrote: »

reusing your food.

I did this. It tastes like s**t.

pbouk

wotsthat wrote: »

It's a phoney war. If Tesco are managing to pass on price increases and expand margins at the same time then the other 3 aren't managing to compete or they are buncing as well whilst making nice noises about competing.

The consumer isn't forcing them to compete but the inflation figures indicate that this might be changing.

the consumer IS forcing them and suppliers to compete. many people are trying the other supermarkets aldi etc, many are downshifting to supermarket own labels, this is forcing pepsi coke cola etc to offer better deals, BOGOF and buy 1 get 2 free etc.
the big 4 still make profits each year but they just have to work a little harder for it at the moment. at the end of the day we all have to eat but if they dont give us the deals we want we can simply go to another supermarket.

wotsthat

pbouk wrote: »

the consumer IS forcing them and suppliers to compete. many people are trying the other supermarkets aldi etc, many are downshifting to supermarket own labels, this is forcing pepsi coke cola etc to offer better deals, BOGOF and buy 1 get 2 free etc.
the big 4 still make profits each year but they just have to work a little harder for it at the moment. at the end of the day we all have to eat but if they dont give us the deals we want we can simply go to another supermarket.

Have a look at this link https://forums.moneysavingexpert.com/discussion/3169124

I'd read this as retailers increasing prices without accepting a corresponding price increase from their supply base i.e. buncing. If there was real and effective competition this wouldn't be possible.