UK inflation worsens.

[securespark]

Talking of inflation, somebody I know told me they went to a Tesco Express for a 750g thing of salt...£1.60

£1.35 in a large Tesco.

65p in Aldi and JS.....

Why?

 

[fillyboy]

Talking of inflation, somebody I know told me they went to a Tesco Express for a 750g thing of salt...£1.60

£1.35 in a large Tesco.

65p in Aldi and JS.....

Why?

Greedflation.

 

[Brigadier]

However, why can nobody answer my very simple question

Because your question is based on a complete lack of understanding, and therefore makes no sense.

 

[fillyboy]

Because your question is based on a complete lack of understanding, and therefore makes no sense.

Which part makes no sense?

Yes, falling inflation means prices are still higher than the year before. CPI measure inflation is based on a bunch of goods and their cost 12 months previous.
My point was that if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022.

Are the cost of those same goods in July 2023 more expensive or less expensive than in June 2023?

 

[Brigadier]

if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022

This, for starters.

 

[fillyboy]

This, for starters.

Why?

What is inflation?

Inflation is the term we use to describe rising prices. How quickly prices go up is called the rate of inflation.

www.bankofengland.co.uk

We know the rate of inflation because every month the Office for National Statistics checks the prices of a whole range of items in a ‘basket’ of goods and services.

They record the cost of over 700 things that people regularly buy. The basket includes everyday things like a loaf of bread and a bus ticket. It also includes much larger ones, like a car and a holiday.

The price of that basket tells us the overall price level. This is known as the Consumer Prices Index or CPI.

To calculate the rate of inflation, they compare the cost of the basket – the level of CPI – with what it was a year ago. The change in the price level over the year is the rate of inflation.

 

[Brigadier]

Why?

Because you've used it as a false premise for your overall argument.

 

[fillyboy]

Because you've used it as a false premise for your overall argument.

My premise was that prices can and do fall. Carman maintains a fall in price is not possible and that inflation is applied monthly.

carmanmemoranda said:
If something cost £100 in January.

£110 in Feb (10%)
£121 in March (10%)
£126 in april inflation has FALLEN to 5% but the price still went up

I don't think I can put it any simpler than that

 

[gant]

Would it not stop all this if Carman could explain himself and educate a wider audience other than filly, I'm sure it would be much appreciated.

 

[Brigadier]

My premise was that prices can and do fall.

So why have you not used the term "deflation" even once in this thread?

(I stopped counting - in the thirties - the amount of times you've used the term inflation "though).

 

[securespark]

Isn't the inflation figure a PA figure, not monthly?

 

[Brigadier]

Isn't the inflation figure a PA figure, not monthly?

PITA figure, more like

 

[fillyboy]

So why have you not used the term "deflation" even once in this thread?

(I stopped counting - in the thirties - the amount of times you've used the term inflation "though).

Because there hasn't been deflation, I simply suggested that there can be a monthly fall in prices. I'll repeat it again:

Yes, falling inflation means prices are still higher than the year before. CPI measure inflation is based on a bunch of goods and their cost 12 months previous.
My point was that if in June 2023 inflation is 10% the cost is 10% higher than June 2022, If in July 2023 inflation is 5% the cost of the goods is 5% higher than July 2022.

Are the cost of those same goods in July 2023 more expensive or less expensive than in June 2023?

Carman won't accept that a monthly fall in prices can occur and went onto illustrate how he thought inflation is applied month on month in a compound way.

 

[Brigadier]

I simply suggested that there can be a monthly fall in prices

Only if there is deflation, which you admit hasn't happened.

 

[carmanmemoranda]

Would it not stop all this if Carman could explain himself and educate a wider audience other than filly, I'm sure it would be much appreciated.

You don't understand it either ?