RPI: Deflation is here

Sally Chatterjee

No so. Negative inflation is not deflation. Deflation is a persistent trend in falling prices. Perhaps this will come but don't fall into the trap of calling it deflation on one month's numbers. Besides the CPI, the Bank of England's target, is still 2.9% and the "core CPI" actually rose.

I'm not an economist, just wary of data being manipulated for headlines or policy.

Thrasymachus

You could have fooled me... Ice Cream was £2.50 a scoop in Regent's Park yesterday.

Pete Hoskin

Thrasymachus: it's £2.50 for a "99" ice-cream in St James's Park. Depressing...

The Laughing Cavalier

But the cost of living still rises. Brown's statistics have been dishonest from day 1.

rmh

EXCLUDE HOUSE PRICE AND HOUSING COSTS AS THEY MAKE THE FIGURES "FALSE".

Sorry for shouting but deflation is a total myth.

Publius

So an other letter to the Chancellor from the BOE then, explaining why inflation has OVER-shot the target.

I mean, if the gov't isn't going to use its "preferred measure" (CPI) then why the hell don't they just scrap it?

Answer: because having two measures allows them to pick and mix to suit the agenda.

London Calling

Outside my local Bank a begger asked me 'have you got any Notes?'
now thats what I call change :0...

Chris lancashire

With a 30% currency devaluation and a huge imported goods bill deflation simply will not happen.

Andy Carpark

Oh, marvellous. Ignore the RPI during the property bubble and rehabilitate it during the property slump.

`When I use a word,' Humpty Dumpty said, in rather a scornful tone, `it means just what I choose it to mean -- neither more nor less.'

THX1138

I bought an "e" last week at it was only £5, last time I bought one five years ago it was £10. The RDI- retail drug index is most definitely showing deflationary tendencies.

To quote the great Frank Gallagher.

"Make poverty history..... make drugs cheaper"

Desmond McCann

I would have hoped for better from you. It is the CHANGE in the Retail Price Index which is -0.4%. The Index is just a series of numbers based on 100 at some date in the past. If the RPI was negative people would be paying us money to take the goods from them. I know the BBC perpetuates this ignorance, but that is no excuse for you.

Demetrius

Tripe and onions. Even the consumer price index is loaded against most people, notably those at the wrong end of the income scales. For some us the real inflation index is hitting aroun 7%, and my budget shows it for the coming year.
http://thecynicaltendency.blogspot.com/

Verity

Andy Carpark, IIRC, it was the Caterpillar who made that statement while smoking a hookah.

Number Plate, your constant efforts to make yourself appear "interesting" are like fingernails on a blackboard. For God's sake give it a rest. Can't they use you over at CiF?

HJ

We could have had negative RPI inflation at any time in the past 15 years had interest rates been cut so far and so fast.

This effect will drop out of the figures after 12 months. Many other prices are increasing, partly due to the fall in the pound. Remember too that public sector inflation is rife, but that because you pay for the public sector mainly through taxes and not at the point of delivery, this is never included in the figures.

hfc

No, Verity. It was Humpty Dumpty as Andy said.

I'm sure your local library can help you with the English classics.