MSE News: Inflation falls to lowest level since May 2000

Pincher

Costco members have a totally different perspective on inflation.


It's when we are forced to buy something that Costco doesn't have, that reality dawns.


I bought a huge bag of 1x4 coffee filter cones, which lasted two years. For the last six months, as the remaining cones got used up, I was desperate to repeat the purchase, but Costco stopped selling it. The Mellitta 1x4 is 3p a cone, whereas the Costco one was more like 1.5p a cone. Makro only has the cake dish shaped one. Bestway sells a 5 pack that is only a smidgeon cheaper than Mellitta.


I always buy the Filippo Berio Extra Virgin Olive Oil in 5 litre containers when there's a Costco coupon price, which is roughly £15. In Tesco and Waitrose, it's £6 for 1 litre, which is £30 for 5 litres!

Thrugelmir

Pincher wrote: »

Are we turning Japanese? Long term low interest rate, flirting with negative inflation?

All it takes is a few earthquakes, and a nuclear blow-out,
and we are there. Is it me, or is half the restaurants sushi bars already? I see bento boxes pictures a lot in windows.

Japan recorded a trade surplus last month. So comparisons aren't that meaningful perhaps.

BobQ

shortchanged wrote: »

Can some of the economic experts on here please explain how we are still registering positive inflation figures?

I can't think of one thing that is more expensive this month than last, let alone more expensive than last year, yet according to the inflation figures things are still getting more expensive.

I find it all a bit baffling and yes mayo before you get the chance I know I find everything baffling.
Can

Rail fares?

Generali

BobQ wrote: »

Rail fares?

In terms of what mayo posted, they will have been more than offset by cheaper motoring costs. If you look on the ONS website they go into a lot more detail than mayo's post however so you can see the rise in rail fares vs the fall in fuel costs.

C_Mababejive

Oh Dear..what will Government do? They need inflation to cover their crimes..and all this before an election to sweeten up the ignorant.

Thrugelmir

C_Mababejive wrote: »

Oh Dear..what will Government do? They need inflation to cover their crimes..and all this before an election to sweeten up the ignorant.

Deflation means an increase in disposable income for many. The ones that will feel the pinch as those that are heavily indebted. As inflation will no longer do the heavy lifting. Deflation does not mean lower growth. Though it will highlight the unsustainability of public services across Europe as a whole.

Generali

C_Mababejive wrote: »

Oh Dear..what will Government do? They need inflation to cover their crimes..and all this before an election to sweeten up the ignorant.

Don't believe what you read about the fall in oil prices being bad for the UK economy. This is a huge boost to consumer spending power at a very helpful time for the Tories.

I expect a mini boom on the back of this, just in time for May.

Nikkster

Generali wrote: »

Don't believe what you read about the fall in oil prices being bad for the UK economy. This is a huge boost to consumer spending power at a very helpful time for the Tories.

I expect a mini boom on the back of this, just in time for May.

'Joyflation'. Apparently.

antrobus

Thrugelmir wrote: »

Japan recorded a trade surplus last month. So comparisons aren't that meaningful perhaps.

For November 2014, Japan had a trade deficit, but a current account surplus.

Japan has been running trade deficits for a few years now.
http://www.tradingeconomics.com/japan/balance-of-trade

Generali

antrobus wrote: »

For November 2014, Japan had a trade deficit, but a current account surplus.

Japan has been running trade deficits for a few years now.
http://www.tradingeconomics.com/japan/balance-of-trade

As Japan is a massive importer of oil, and indeed pretty much all commodities, I suspect that the fall in prices will feed through to trade balances over the next year or so as supply contracts are renegotiated at lower market prices.