OT: deflation

[Tim S]

Hmm - the RPI has just hit -0.4% according to

when/if the CPI will do the same?

Wouldn't know it looking at my weekly Sainsburys shop though :(

Tim

[Harry Stottle]

Tesco have just announced record profits of nearly £3bn pounds, so this confirms what we already knew, the supermarkets have not reduced their prices accordingly after the fall in wholesale prices, and are pocketing the difference.

[Adrian C]

Depends. There is a Tesco 'Express' store near me (Kingsbury - NW London) that is not exactly street competitive on price on 80% of the stock compared with the nearby shops. Hardly anyone shops in there.

However, when it was built, flattening the rather nice 'Prince of Wales' public house, above it went a large quantity of flats which sold out quite quickly. Money in their bank.

[Stuart B]

"The ONS said that the biggest downward pressure on inflation had come from energy prices "

Clearly they haven't looked at Gas and Leccy bills properly!!!

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[Emil Tiades]

and Tesco, thanks to their tax avoidance schemes, pay very little tax in UK. Thousands of UK tax paying retailers have gone bust because of parasitic scumbag companies like Tesco, Amazon, play.com etc. What does the government do about these scumbags? Bugger all.

[mick]

They no doubt pay some good accountants.

No big business pays unnecessary tax. That's *why* they employ good accountants. They aren't actually doing the government out of anything - merely avoiding paying out unless necessary. I doubt very much if they could simultaneously trade and illegally avoid tax!

[Tim S]

Stuart B coughed up some electrons that declared:

Diesel's going up again too...

[John]

It won't, inflation is the only way they can minimise out current excessive levels of debt effectively.

Low interest rate = devaluation of GBP = more expensive imports = inflation. Inflation allows for wage increases (in GBP terms) and hence more ability to repay debt.

A bit of a piss off of you were prudent and have savings rather than debt but there you go.

[mogga]

I don't believe a word of what they publish anymore. They seasonally adjust things to do what they want, ONS can hide data it deems unfit to share. And they swap the rpi and cpi baskets all the time to fiddle the figures.

[Tim S]

mogga coughed up some electrons that declared:

I don't doubt it.

I remember when the RPI data collection was done by nominated JobCentres sending a member of staff out to collect prices on the mythical shopping basket once per month.

Wonder who does the legwork now? Probably a perl script browsing Tesco's online shopping site ;->

[Dave Plowman (News)]

There would need to be a long period of high deflation before they returned to their previous levels.

[Mark]

I was going to say that there's nothing actually useful in the inflation "basket" but then I remembered that Tescos sell loads of useless tat as well as food.

[matthew.larkin]

hyping either the CPI or RPI depending on whether there is a story in it for them. Stable CPI is a non-story, but negative RPI is more interesting.

Bear in mind that RPI includes mortgage interest payments (and that is the biggest difference between RPI and CPI), and (speaking personally) my mortgage payments has reduced by over 25% in the last month as I've come off a fixed rate onto the lender's standard variable rate. So in real terms I have almost =A3300 per month extra cash in my pocket - and on that basis everything just got a lot more affordable!! (As it happens, I'm using the extra to simply pay down the mortgage capital regularly).

Matt

[whisky-dave]

I think what was meant is that is it legally fair. In the same way the queen pasy less council tax than average apparently .

In the same why I'd like to know why MPs need second home allowencies.

[Emil Tiades]

They use tax loopholes which Darling and his bunch of morons are too stupid to close. Tesco are running their business through shell companies in tax havens. How much tax will they pay out of the 3 billion profit they have made? Probably less than you and I

[Tim S]

Emil Tiades coughed up some electrons that declared:

Oddly enough, Darling was talking about closing them on Radio 4 this lunchtime. Or if it wasn;t Darling, it was a government official. The programme was chopping back and forth a lot, so I lost track. But the whole big corp tax fiddling thing is being noticed.

[Emil Tiades]

It's been noticed a very long time ago, but the spineless govt aren't doing anything about it, they bark a lot but do sod all.

[Tim S]

Emil Tiades coughed up some electrons that declared:

Maybe Labour Party funds are running low, so Radio 4 today was about reminding a few people to start filling some brown envelopes?

Strewth - I thought I was already cynical enough