Ee price increase

BigAd09

This may be a daft question but it's been bugging me and I'm not sure if I'm just being a idiot, so last year ee put the prices up 14% because of inflation, this month it's gone up 7.9%, surely if inflation come down that should be reflected in the prices 

simax

All that’s happened is the rate at which prices are increasing has gone down, not prices actually going down themselves. That would actually be deflation, and measured in negative numbers….

cymruchris

BigAd09 said:

This may be a daft question but it's been bugging me and I'm not sure if I'm just being a idiot, so last year ee put the prices up 14% because of inflation, this month it's gone up 7.9%, surely if inflation come down that should be reflected in the prices 

The inflation rate has reduced - but it's still going up - it's still a postive number.

While the rate is 1% 2% 3% etc. prices are still going up - just more slowly.

For prices to come down we'd need to see a negative inflation rate, like -2% or -4%,  but that's currently as likely as the current government being the next government, and usually would hurt the economy considerably if we were in that position.

Prices on most things will unlikely ever come down - they'll just not go up as quickly as they did.