Inflation watch


An interesting article from Business Insider from back in November 2013 which states that falling gas prices help, not hinder the economy.

Gas Prices Are Declining, And It’s Turning Into Real Wealth Gains For Americans … z2zW9U8rJA


I suppose this is really stating the obvious, but if the cost of essentials go down, it leaves more money in the pockets of consumers to spend on the desirables and this makes the economy look good.


Consumer Spending Jumps, Pointing to Spring Rebound … 2182868206

Why is this presented as good news? Did Americans buy more bread and electricity in March compared to February? No, the prices just went up!

Also, incomes rose at a slower rate than expenditure so that means consumers needed to dig into their savings or borrow. Again, bad news.


Japan Props Up More Power Utilities to Avoid Rate Increases … es-1-.html

But I thought it was *falling *prices that hinder economic growth and that *increasing *prices are good for an economy?


Emerging gap between Billion $ Prices Project and CPI


Large Increase In Number Of Joint Rollers ‘Top-Loading’ At House Parties … e-parties/


^Apparently other research found that 87% of the party goes were referred to as Humphrey.


Consumer Price Index, April 2014 … april2014/

% monthly change +0.1%
% annual change +0.3%

Private Rents (table 7)
% monthly change +0.2%
% annual change +9.1%

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


It’s time for the Japanese to pop the cork on the Champagne bottles in celebration…

Japan inflation rate hits 23-year high

… and there’s that same lie, which is repeated again and again with nobody questioning it.

Can somebody please tell me one (just one!) consumer good that they would put off buying if they thought it would be 2% cheaper one year from now.

But getting back to the success of Japan hitting new inflation highs, surely we will see a major upturn in their standard of living now that the holy grail of increasing prices has been achieved…


Simple. They don’t include house purchases!

As for Rent, it’s lumped into this category.

Housing, Water, Electricity, Gas and Other Fuels

and that represents 15.76% … 4t6d_mSwrU


The problem is of course your’s is more than that. Spread across the population it’s different. Bear in mind that 40% of OO’s in Ireland have no mortgage.


I wonder will retail decide it’s time to start raising prices seeing as “everyone” is now prepared to spend on property again…


Consumer Price Index, May 2014 … exmay2014/

% monthly change +0.0%
% annual change +0.4%

Private Rents (table 7)
% monthly change +0.4%
% annual change +9.0%

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


Gas Prices Hit Record Highs Across Parts Of Canada … 97116.html
Another story about how rising energy prices are hurting the consumer, this time in Canada. It’s becoming clear that the press push the message of all prices rises are good in general, but when they run a story about specific products or services hitting record highs they talk about how bad it is for the consumer.

So which is it?! They can’t have their cake and eat it too.

What they should report is that falling consumer prices are good for consumers and businesses, but if falling prices follow through to assets such as real estate and stocks, the financial industry and government are the big losers.


Inflation becomes relevant again as US consumer prices climb 2.1% … z34yqunt00

So we’ve now hit the Fed’s target for optimal inflation (2.0%), and fought off the evil force of deflation, so let’s see the US economy boom now!

Actually, for anyone who believes the inflation good / deflation bad theory, I’d love to know is 2.1% inflation better than 2.0%?


I would love to hear yogan & DP’s view on this…
Do you two still think low interest rates = deflation?


Wasting my time here, but here goes.

It depends on the current dynamic of the economy, and where it needs to go.

Oh says you, cannot give me a straight answer?

In view of the fact you’ve had the differences and similarities between what is in the interest of the general economy and what is in the interest of how much you can acquire for yourself on the back of your own little savings stash and present monthly salary, explained to you umpteen times before, I now commit propertypin harikari.

Slláááán XX


Exactly Barney, you’ve hit the nail on the head.

I think a lot of people on here would agree that “assets” are overvalued and out of kilter with wages and even consumer goods, which as yet have not really risen as I for one expected.

Instead of letting these assets (real estate, stocks, bonds etc) drop in price to realistic levels, monetary policy is trying to create inflation to increase consumer goods and wages, which is fine if it works. They try to justify this by spreading the absolute lie that consumers stop buying consumer goods when prices are falling, and incorrectly citing the US Great Depression and Japan of examples of economic hardship **caused **by deflation.

What we will continue to see is asset prices continuing to rise, consumer goods and commodities starting to rise, but wages will remain static and the standard of living will fall.


You’ve said goodbye numerous times now, but still come back. I hope you don’t do that at parties too!

Exactly, you have been extremely vague on this thread, and have constantly refused to answer direct, specific questions about the merits of inflation.

This is not just about how much I can buy with my salary or savings, it is about how much you can buy with your savings, how much our parents can buy, and how much **everybody **can buy. Isn’t that what generally separates people with a good standard of living from those that don’t… The ability to buy things with their savings.

Whatever about the merits of inflation or deflation in general where there is of course room for discussion (unless you take your ball and go home again), I am also trying to challenge the widespead notion that deflation is bad for consumers. You seem to have the same opinion but refuse to answer the simple question I have put to you: tell me one consumer product that consumers refuse to buy if they think it will be 1% cheaper in one year from now.



A year I wish… Yesterday back on planet nuts and bolts where I bought some 16 ft lengths of pao, the price had gone up almost 50%, I had only gotten the quote some two months previous. Sweet mother of! The chap whom sold it to me was straight and honest and said that it had been hiked something whopper. Needed it but wtf… Hmmm