Deflation: now -1.7%

[Dios]

Yes, but to different degrees. Since we import a lot of what we buy, and companies import a lot of unfinished goods and other raw materials a lot of what we spend ends up going abroad anyway.

The imports don't magic themselves off the container and into your kitchen however. Expenditure in these retail outlets helps drive further internal growth. To a lesser degree than a heavily export oriented economy perhaps, but still. I see what you're saying though.

We'd be better off trying to improve our competitiveness through cutting costs and investing. Basically we should take a more long-term outlook and accept that we will have to suffer a few years of pain.

I'd be happier with a top down export oriented initiative, albeit with pain. At least we'd have something more at the end of that than a generation of mortgagees in shoeboxes longing for the good old days of positive equity.

[SkatesOn]

Mortgage payments or house prices? Because after a little checking, my suspicion was confirmed, the government does not include house prices in inflation figures.

Correct - that is what I said.

[omnieoin]

The imports don't magic themselves off the container and into your kitchen however. Expenditure in these retail outlets helps drive further internal growth. To a lesser degree than a heavily export oriented economy perhaps, but still. I see what you're saying though.


I'd be happier with a top down export oriented initiative, albeit with pain. At least we'd have something more at the end of that than a generation of mortgagees in shoeboxes longing for the good old days of positive equity.

Yeah, so would I. In the long-run an export and research led plan would be infinitely better, although a lot more difficult to implement.
Problem is we get a lot of rhetoric about these things but no action at all. So the chances of this are very slim.