Inflation watch


Cost of living in dear old Dublin is rising again … -1.1712178


The Marshall-Lerner condition might help explain it…


Consumer Price Index, February 2014 … ruary2014/

% monthly change +0.5%
% annual change -0.1%

Private Rents (table 7)
% monthly change +1.2%
% annual change +10.2%


So negative annual inflation up to Feb 2014, matching the awful 2013 GDP figure of -0.3%. This shows 2014 is as bad so far.

On the plus side, NTMA sold 1bn in bond’s at a really low price 2.967% this morning just before the GDP results came out.

We are paying roughly €7-8bn per annum on interest alone for all these loans we took out. The idea was economic growth would get us out of the hole we dug…

Seems like getting a refund from the EU for bailing out Anglo is the only thing that can kick start the economy anytime this decade…


Wheres turbobaby and the hyperinflation warnings?


Local Authority rents +5.4%


Coppers face axe: are one and two cent coins on the way out? … -1.1725271




I think they just try to catch with changing world, including services in PPI seems reasonable as economy is so much more than products.


Oh slasher, how you wish you had actually loaded up on the coffee futures instead of being a smart arse.

Coffee futures up 61% since your post in early November. XX


Consumer Price Index, March 2014 … march2014/

% monthly change +0.7%
% annual change +0.2%

Private Rents (table 7)
% monthly change +0.8%
% annual change +10.0%

Local Authority Rents (table 7)
% monthly change +0.0%
% annual change +4.1%


It’s Time to Ditch the Consumer Price Index (CPI) - Charles Hugh Smith ->


Did anyone hear Obama’s speech in Pennsylvania earlier this week… I tried to find the vid but could only get the transcript.

Even Obama doesn’t believe the ridiculous CPI numbers…


I think I read somewhere it was on the very same day Obama gave that speech, Yellen was giving another …

It makes a complete mockery of America’s CPI numbers.
Low inflation leads to low interest rates and low wage-negotiation settlements.
Consequently, there are huge implications in forcing the headline rate lower.
But this can only occur through a systematic and purposeful ignoring of real increases.

I also find the excuses against deflation to be very weak.
Imagine shops telling you that sales were not in your interest and that you must continue paying full price !
Deflation is a natural by-product of greater efficiency.
Lower prices increase your standard of living.


A more effective index would be one that evaluates how many minutes of gross income is needed to buy certain items, for example someone earning the industrial median wage would need to work six minutes for a litre of petrol and twenty minutes for a pint of beer at the pub.

Such an index would take both earnings & expenditure into account.


I completely agree. Sadly, we seem to be in the minority. I challenge anyone to give an example of a consumer good that would not be purchased because it’s price would be 1% lower a year from now.

The only purchases that would be put off are housing and stocks. When people understand this they should realise why there’s such a bias against deflation in the media.


Government needs its tax. The banks will entertain this because that’s what a central bank is for, to fund government spending. Pensions only go up, hence prices must go up.


Japan logs record $134B trade deficit in FY 2013

The weak yen policy is failing miserably. With the oil charts looking pretty strong, the Japanese could be in for more pain. On a positive note, at least they don’t have to worry about deflation… :confused:


Thought experiment: Closed system self sustaining farm of 300 souls. Each issued 2000 dollars to acquire services from each other. Never any new money issued. That is the religion. Come back in 25 years what is the situation?


The one with the gun has it all!