MSE News: Price cuts trigger inflation fall

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Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in Savings & investments
This is the discussion thread for the following MSE News Story:

"A raft of high-street promotions in the run-up to Christmas triggered the largest inflation drop in nearly three years ..."
Read the full story:
Price cuts trigger inflation fall


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Comments

  • plumber2009
    plumber2009 Posts: 304 Forumite
    edited 17 January 2012 at 3:05PM
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    Does anyone believe this tripe?

    This is just a game of manipulation as the figures are meaningless.

    Wages are falling and prices are rising and this will continue well into the future.
  • flexrider
    flexrider Posts: 745 Forumite
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    plumber2009 wrote: »
    Does anyone believe this tripe?

    This is just a game of manipulation as the figures are meaningless.

    Wages are falling and prices are rising and this will continue well into the future.


    :TWell said, The fact that this country many a few years ago used to be a good robust nation of shopkeeps and exporters in other fields or treands shows that double dip recession is on way again!
    "MSE Money saving challenges..8/12/13 3,500 saved so far :j" p.s if i been helpfully please leave me a thank you but seek official advice at all times from a pro
  • lvader
    lvader Posts: 2,579 Forumite
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    plumber2009 wrote: »
    Does anyone believe this tripe?

    This is just a game of manipulation as the figures are meaningless.

    Wages are falling and prices are rising and this will continue well into the future.


    Inflation will continute to drop for a while, 2011 inflation was mostly about high commodity prices and the VAT hike, both of those no longer apply.
  • gozomark
    gozomark Posts: 2,069 Forumite
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    plumber2009 wrote: »
    prices are rising

    falling inflation doesn't mean prices aren't rising, merely at a slower pace...
  • oldvicar
    oldvicar Posts: 1,088 Forumite
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    Put the bunting out ... inflation is only double target levels.

    I know its due to drop sharply in the next few months too. But I doubt it will see the target 2% for any sustained period.

    Of some concern to those really feeling the squeeze is that the items reducing in price are e.g. alcohol and clothes - which are 'luxuries' which can be done without for a while - whilst the cost of essentials such as food continue to rise strongly.
  • lvader
    lvader Posts: 2,579 Forumite
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    Food commodities like wheat and corn have also dropped, it takes a while for these to filter through.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    The source for this story beyond the PA appears to be this press release from the Office for National Statistics.
    plumber2009 wrote: »
    Wages are falling and prices are rising and this will continue well into the future.
    Lower wages mean lower prices for those buying what those wages are making. Less pay for a plumber means cheaper plumbing work and lower inflation of plumbing costs. In the short term you can have mixtures like falling pay and rising prices or vice-versa due to changes in material costs but long term prices are linked in part to wages.
  • Paulgonnabedebtfree
    Paulgonnabedebtfree Posts: 2,740 Forumite
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    [sarcasm] Food up 20%.
    Rolls Royces down 3%.

    Hooraaaaaaaaay for Merrie England (sorry - Britain).
    [/sarcasm]
  • pqrdef
    pqrdef Posts: 4,552 Forumite
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    Those who remember the 70s will remember that pay freezes only build up a head of pressure and eventually the dam bursts.

    People have decided they'll put up with a temporary bit of belt-tightening while the country pays off its debts (which it isn't doing) but they haven't reconciled themselves to a permanently reduced standard of living. They're still expecting their future incomes to get back to where they were in real terms, and then keep going.

    Union strategy is to live with Cameron until 2015 and then bang in the big pay claims.

    Last year Miliband banged on a lot about what he called "The Promise Of Britain" - each generation being better off than the last. I wonder if we'll hear any more of that.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • eighties_girl
    eighties_girl Posts: 15 Forumite
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    The only reason they are doing this, is so the people on benefits and pensions get a lower rise in there money.
This discussion has been closed.
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