Deflation...what deflation?

[seabhac siulach]

In the UK food prices are continuing to rise, confounding expectations of a drop.

Shop prices soar as pound pushes up food costs - Times Online

Echoes of stagflation, i.e., inflation coupled to economic contraction.

As this country imports large quantities of branded goods from the UK, it is therefore to be expected that food prices will also rise here. In the emergency budget of yesterday, Lenihan alluded to deflation palliating the effects of tax increases. If this news from the UK is anything to go by, then any relief from higher taxes will not come from lower food prices.
What is the latest news here for food inflation (of prime importance to the lower paid)? I have read anecdotal evidence that prices in Lidl, Aldi, etc. are increasing.
Where is the evidence of deflation in normal everyday (food and other) prices, stripping out the (one off) effect of the lower cost of mortgages and petrol?

[essexboy]

In the UK food prices are continuing to rise, confounding expectations of a drop.

Shop prices soar as pound pushes up food costs - Times Online

Echoes of stagflation, i.e., inflation coupled to economic contraction.

As this country imports large quantities of branded goods from the UK, it is therefore to be expected that food prices will also rise here. In the emergency budget of yesterday, Lenihan alluded to deflation palliating the effects of tax increases. If this news from the UK is anything to go by, then any relief from higher taxes will not come from lower food prices.
What is the latest news here for food inflation (of prime importance to the lower paid)? I have read anecdotal evidence that prices in Lidl, Aldi, etc. are increasing.
Where is the evidence of deflation in normal everyday (food and other) prices, stripping out the (one off) effect of the lower cost of mortgages and petrol?

No sign of any price reduction anywhere.

[patslatt]

In the UK food prices are continuing to rise, confounding expectations of a drop.

Shop prices soar as pound pushes up food costs - Times Online

Echoes of stagflation, i.e., inflation coupled to economic contraction.

As this country imports large quantities of branded goods from the UK, it is therefore to be expected that food prices will also rise here. In the emergency budget of yesterday, Lenihan alluded to deflation palliating the effects of tax increases. If this news from the UK is anything to go by, then any relief from higher taxes will not come from lower food prices.
What is the latest news here for food inflation (of prime importance to the lower paid)? I have read anecdotal evidence that prices in Lidl, Aldi, etc. are increasing.
Where is the evidence of deflation in normal everyday (food and other) prices, stripping out the (one off) effect of the lower cost of mortgages and petrol?

The more than a third drop in sterling from its peak against the euro means that prices of imports from the Uk should drop by that amount in that time for products,except for products that are strong brands and hence have a good degree of control over retail prices. Lack of competition in some marketing distribution networks may also prevent prices from declining,but by the same token the prices may not rise with a recovery in sterling as Irish suppliers average out the sterling fluctuations over time.

[Dios]

In the UK food prices are continuing to rise, confounding expectations of a drop.

Here we go, quantitative easing leading directly to hyperinflation. You'll see wages rise next, I doubt wage stagnation is on the cards, at least I hope not, then its a straight run home to £12 a pint and cheap at the price, while the debt problems vanish.

I've been musing on the effects of hyperinflation vs exchange rates, I have to wonder will currency values really change to give that much of a competitive export advantage to the US and UK if prices and wages are rising in tandem? I guess it all depends on which changes faster.

[seabhac siulach]

The more than a third drop in sterling from its peak against the euro means that prices of imports from the Uk should drop by that amount in that time for products,except for products that are strong brands and hence have a good degree of control over retail prices. Lack of competition in some marketing distribution networks may also prevent prices from declining,but by the same token the prices may not rise with a recovery in sterling as Irish suppliers average out the sterling fluctuations over time.

Sterling dropped by something like +30% against the euro months ago. It dropped 20% since last November and yet food prices here have remained high over the past five months. The +30% reduction in the value of sterling vis-a-vis the euro has not been reflected in our prices in the past and is therefore, I would suggest, unlikely to be reflected in our prices in the future. We can speculate as to the reasons for this. How long does it take to pass on the effects of currency changes? Longer than 5 months? Are the prices of products hedged? I find that unlikely.
I think we may all quite safely predict that each and every price increase will be diligently passed on...hence the danger of food inflation in the UK for Ireland...

[Digout]

Total meltdown happening.

[atlantic]

As they depend on imports and have devalued sterling imports are getting dearer
also quantitative easing (printing money) may be starting to hit the market,so here comes inflation.

[Ecoguy]

Thats why PAYE people in this country are really screwed. Day to day expenses like groceries, petrol etc. are just not coming down in price while ordinary peoples wages/incomes spending power continues to shrink at a frightening rate. Over to you IBEC, ISME!!

[atlantic]

Are we starting to see the start of an inflationary depression?Uk first ,then the US .

[Dios]

Are we starting to see the start of an inflationary depression?Uk first ,then the US .

I think so. This will be interesting. I'd rather watch it from another planet mind you, but still interesting.