Deflation sets in as shop prices fall even faster April 7, 2015 Shop prices fell at a record pace in March, with clothing and electrical prices diving, and food prices falling faster than ever before. Overall prices fell by 2.1 per cent on the year, according to the British Retail Consortium (BRC), with food prices falling by 0.9 per cent. Those are both the fastest declines in [...]
Zero inflation is the new normal: The world can’t evade its debts forever March 31, 2015 Zero inflation is trending. The consumer price index in the UK was at the same level in February as it was a year earlier. The reporting of this figure on the BBC website created some unintended amusement, however. The drop to zero, we were told, was “sharper than many analysts had expected”. And what was [...]
Don’t fear the deflation bogeyman: It’s unlikely to harm the UK economy March 30, 2015 As flat as a pancake. Last week’s inflation figures showed that the Consumer Price Index (CPI), the main measure of the prices of goods and services bought by households, was the same in February as it was a year earlier. This has led many to ponder the likely economic implications of deflation – if the [...]
Jeremy Clarkson’s ousting, Britain enters “noflation”: What got us talking this week March 27, 2015 It was a week of departures: Jeremy Clarkson was finally ousted by the Beeb (he’s now 16/1 to stand for Ukip), Zayn Malik caused untold pain among teenage girls (and a certain amount of glee at Spotify, which capitalised from a “sadness spike”) when he announced his departure from One Direction, and ITV bosses revealed [...]
Another BoE official just poured cold water on deflation fears March 27, 2015 Bank of England deputy governor Ben Broadbent has joined a chorus of rate-setters who've said the risk of Britain slipping into a deflationary spiral remains low. "The likelihood of a broad and protracted deflation, afflicting wages as well as prices, is pretty low," he said. So far, low inflation has been a boon for the [...]
Japan just joined Britain in the “noflation” club March 27, 2015 Core consumer inflation in Japan stalled in February, meaning it has joined now Britain in the "noflation" club. The government said that its key inflation gauge, which strips out the effect of last year's sales tax hike, was flat from a year earlier. This means it has moved further away from the Bank of Japan's target [...]
We can live with zero inflation: The two per cent target must not be set in stone March 26, 2015 For the first time since the 1960s, the main measure of UK inflation has fallen to zero. While this seemed to be a shocking fact for many economic commentators, it should not be a great surprise. For over 30 years, defeating inflation and achieving price stability have underpinned UK economic policy. Low inflation became a [...]
Surprise as UK inflation falls to zero for first time since current records began in 1989 March 24, 2015 Inflation fell to zero in February for the first time since current the current records began in 1989, moving Britain closer to deflation, official statistics showed today. Figures released by the Office for National Statistics showed prices didn't increase at all in February compared with the same time a year ago. The figure came [...]
Bank of England minutes: Strong pound risks exacerbating deflation March 18, 2015 Bank of England policymakers think the strong pound could exacerbate the current period of low inflation. Minutes released today showed the monetary policy committee believes divergent monetary policy trends, and a strengthening economy, could cause the pound to appreciate further. "This has the potential to prolong the period for which consumer price inflation would remain [...]
Inflation basket of goods: Ecigarettes and craft beer in, yoghurt drinks and sat navs out March 17, 2015 A sign of modern life, or a marker of British society's inexorable slide into middle classness? The Office for National Statistics (ONS) has performed its annual reshuffle of the basket of goods, the items it uses to measure inflation. It's all gone a bit… Waitrose-y. Among the additions to the basket are refills for ecigarettes, [...]