Shop price inflation accelerated ahead

Graham_Devon

Up 2.9% in the year. Biggest increase since October 2008. Likely to rise further.

:beer:

http://www.bbc.co.uk/news/business-14041560

DervProf

Food prices aren't important. Property prices are what the BoE need to concentrate on.

Anyway, it's just a blip.

michaels

Interesting comments re promotions in the article.

IN my experience Retailers seem to be getting much smarter in running promotions and generally changing prices very regularly to match competitors etc. To what extent do indexes take account of deals like BOGOF etc as it seems many goods are now priced on the basis that they will be on promotion at least 25% of the time with a completely unrealistic 'normal' price.

Graham_Devon wrote: »

Up 2.9% in the year. Biggest increase since October 2008. Likely to rise further.

:beer:

http://www.bbc.co.uk/news/business-14041560

lemonjelly

DervProf wrote: »

Food prices aren't important. Property prices are what the BoE need to concentrate on.

Anyway, it's just a blip.

I'll give you the bebefit of the doubt that there's sarcasm in that there post of yours.

Food prices & general household cost of living is (imo) likely to be one of the defining issues over the next 2-3 years. Food prices & increases in utility bills will be a massive pressure on households. What gets spent on food/household bills won't be spent on improvements or stashed for moving etc.

Problem for the BoE, is that IR's will not affect this form of inflation, so what do they do.

I did read a document the other day suggesting that food prices are starting to fall though...

Graham_Devon

lemonjelly wrote: »

Problem for the BoE, is that IR's will not affect this form of inflation, so what do they do.

IR's can affect this form of inflation, even BOE members have stated so.

We are currently hitting, or close to yearly lows against other worldwide currencies. A part of that is reflected by our interest rates. Again, BOE members state so.

So rate rises can have an affect, but not an immediate large affect.

Afterall, we've always used interest rates to control inflation in some form. It's only very recently (past couple of years) people have gone round suggesting theres nothing we can do, as they want base rates to stay low, for various reasons.

In only 2006, we were using the interest rates to attempt to control inflation. If it couldn't ever control it...why did they raise them in response to high oil prices?

zenmaster

I was in Poundland at the weekend.

Prices held steady.

Thrugelmir

zenmaster wrote: »

Prices held steady.

Packets are smaller though, so less for your quid.

Loughton_Monkey

zenmaster wrote: »

I was in Poundland at the weekend.

Prices held steady.

I go to the 99p shop personally.

Seriously, though, we all make our own inflation to a large degree. Thought I'd just run my own figures (actual) up the flagpole. Year to date. Using the main categories I use in my accounts:

Housekeeping: -11.6%
Motoring (inc petrol): -16.0%
Other Purchases: -31.8%
Utilities: -4.0%
Income Tax: +32.3%
Miscellaneous Expenses: -35.4%

Grand Total Outgoings: -12.6%

My 'income' has held up very well. Tax increase somewhat due to Mrs LM now having her pensions and paying tax (these are joint figures). Equity growth as per same period last year is rather disappointing, but that's not (consciously) caused us to spend any less. So I have no explanation other than we are simply spending less, and I was surprised at the figures myself since our lifestyle continues to remain as 'comfortable'.

Conrad

Graham_Devon wrote: »

It's only very recently (past couple of years) people have gone round suggesting theres nothing we can do, as they want base rates to stay low, for various reasons.

We better get used to the reality that all resources are now in much greater and ever rising demand. Increasing interest rates would have limited effect as ther world markets wont price adjust to suit liitle ole blighty.


In some developing nations people spend 50% of net income on food. It's only about 12% in the UK, so we are much better off compared to many and food and waste abounds here.


All lefties should welcome rising prices as some of this can be attributed to higher wages and better perks for workers - isn't that what lefties 'claim' they want? No lefty should be seen in low cost stores that rely on cheap overseas labour as this goes against everything they SAY they believe in:rotfl: