UK inflation worsens.

[Brigadier]

More or less agree with that, except my walk has a few short 'downhill' stretches.

And, depending on how short and gentle those downhill stretches are (in comparison to the uphill bits), you can have deflation and still have higher prices than at the same time last year

 

[Brigadier]

Wouldn't you eventually die from lack of oxygen?

We all eventually die from lack of oxygen

 

[fillyboy]

Which each would be deflation

And, depending on how short and gentle those downhill stretches are (in comparison to the uphill bits), you can have deflation and still have higher prices than at the same time last year

Yeah, in my examples I've acknowledged that if inflation halved the price for the basket would still be higher than the previous year, but for a short period will be cheaper than the previous month.

 

[Brigadier]

but for a short period will be cheaper than the previous month.

It won't.

Not without significant deflation.

 

[carmanmemoranda]

Cmon this is schoolboy stuff

 

[fillyboy]

It won't.

Not without significant deflation.

Disinflation.

 

[Roy Bloom]

We all eventually die from lack of oxygen

 

[carmanmemoranda]

Disinflation.

For example, a food item on December 2021 is $5. The price increased by $1 every month. Suppose, from July 2022, the price only increased by $0.5; this is disinflation. There is still a price rise, but the rate has decreased, i.e., from $1 to $0.5.

 

[Roy Bloom]

Yeah, in my examples I've acknowledged that if inflation halved the price for the basket would still be higher than the previous year, but for a short period will be cheaper than the previous month.

That's like saying if the rate of acceleration halved, you'd be going slower.
No you wouldn't. You'd still be going faster, but the rate of acceleration wouldn't be as high.

Roy

 

[fillyboy]

I'm close to admitting defeat, but before I do. You are all, categorically stating that it's impossible to have a monthly fall in the price of goods?

 

[Roy Bloom]

It's perfectly possible to have a monthly fall in prices. It's called deflation. It's also known as a negative rate of inflation.

Disinflation is when the rate of inflation falls, but is still positive.

Roy

Edit, think of electronic goods, the prices annualy have probably reduced, over the last ten years or longer, but it does not affect inflation. It's just one item in a range of goods that is being measured.

 

[Brigadier]

I'm close to admitting defeat, but before I do. You are all, categorically stating that it's impossible to have a monthly fall in the price of goods?

I've already answered that.

#184, as a recent example.

 

[fillyboy]

OK

 

[Brigadier]

With regard to why inflation is quoted against the same period in the previous year, my best guess as to why would be this:

Inflation / deflation is calculated on a typical basket of goods.

The typical basket of goods in December will likely contain turkey, Sprouts, and Christmas crackers.

The typical July basket:suncream, ice cream, shorts.

Comparisons between those two baskets would be effectively meaningless.

 

[gant]

OK

Your a brave man filly doing that in here.
The day the chuckle brothers do it I think we can safely say hell will be on its way to freezing over.