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Deflated!!

Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Deflated!!

An interesting thing can happen to the economy this week. When the monthly CPI figures are released we could find we have entered a period of deflation. It will only be 0.1% and nothing to worry about. It will be the first time in 55 years this would have happened.
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Community Veteran
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Registered: 15-06-2007

Re: Deflated!!

but before they changed it this was based on RPI which is usually higher than the CPI
Community Veteran
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Registered: 06-11-2007

Re: Deflated!!

Well, we can blame that on the government....  Grin
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: Deflated!!

@Oldjim, you are right but the comparatives are still valid year on year. Statisticians recalculated the figures for previous years.
Community Veteran
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Registered: 21-03-2011

Re: Deflated!!

Blame the Gov't for reduced prices?
Now Zen, but a +Net residue.
Community Veteran
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Registered: 08-01-2008

Re: Deflated!!

Yep, blame them when prices go up, blame them when they go down, blame them when Tesco have a special offer and the shelf's empty!
Everything is the government's fault (even though we voted in free elections).  That's true democracy (and freedom of speech).
Call me 'w23'
At any given moment in the universe many things happen. Coincidence is a matter of how close these events are in space, time and relationship.
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Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: Deflated!!

Some people will blame them whatever happens Wink
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: Deflated!!

Some more detail on the possibility of deflation.
Deflation
VileReynard
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Registered: 01-09-2007

Re: Deflated!!

So people will defer spending on non-essentials until the price has fallen sufficiently.
Loads of shops will go bust, together with their suppliers, and everyone can go to hell.
A government that stimulated the economy by borrowing money (and mild inflation) would increase living standards.
The bunch of multi-millionaires we have seem to be deliberately destroying everything they can get their hands on.

Community Veteran
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Registered: 27-05-2011

Re: Deflated!!

Quote from: vilefoxdemonofdoom

Loads of shops will go bust, together with their suppliers, and everyone can go to hell.
A government that stimulated the economy by borrowing money (and mild inflation) would increase living standards.

We're all dooomed!
Did you actually read the article, it's all due to the recent falls in fuel and food prices and not a trend which could be classified as deflation by economists. It's a good thing!  Cool
To do is to be - Neitzsche
To be is to do - Kant
do be do be do - Sinatra
Community Veteran
Posts: 18,544
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Registered: 12-08-2007

Re: Deflated!!

@PeterLoftus, yes the article makes it clear any deflation will be short lived. The oil price took a move upwards in later months last year which will be reflected in the figures for future months this year.
VileReynard
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Registered: 01-09-2007

Re: Deflated!!

There is no reason to suppose that will happen.
The Tories have promised to throw many thousands on the scrap heap to meet their austerity cuts.

Community Veteran
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Registered: 27-05-2011

Re: Deflated!!

your in denial!  Grin
Unemployment down, employment up, wages up, stock market up, pound up, fuel and food costs down, happy days are here again if you want to work  Grin
To do is to be - Neitzsche
To be is to do - Kant
do be do be do - Sinatra
VileReynard
Seasoned Pro
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Registered: 01-09-2007

Re: Deflated!!

I don't.
I'm retired. Grin
BTW Fuel costs are no longer down - I have to pay £1-12 now...

Community Veteran
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Registered: 12-08-2007

Re: Deflated!!

As predicted we moved into deflation with the announcement of the figures today by 0.1%.