Media reports costs of living rises as Good News!

Some quotes from the BBC article – which no doubt – were repeated throughout the country all day and night yesterday:

“Food sales during the late Easter holiday made a significant contribution to the overall figure, the ONS said.

They were 6.3% higher in April against a year earlier”

And from The Guardian “The ONS said there had been an across-the-board increase in sales last month, with food stores showing their strongest annual growth rates in 12 years. Supermarket price wars are believed to have been a factor in the 6.3% rise in sales in the year to April.”

On what planet do they expect us to believe that rising food sales is the result of discounting and that we’re buying more than 7% more food than last year.  (With ‘discounting’ we must be buying more than the 6.3% rise in sales.)  And yet most do believe it.  #brainwashing

Do you seriously believe we are buying so much more food?  No. No. No.

The price of food has gone up.  IT HAS NOT BEEN DISCOUNTED.  My wife and I are constantly amazed at the prices in Sainsbury and Morrisons, our local superstores.  Hence why we love #ALDI.  As I say – Tesco Premium goods at Tesco Value prices.

Anyway, the media has lied through its teeth that prices have fallen and we are eating several % more than last year.  Sure, there was the Bank Holiday extra purchases but over 6% difference?  NO WAY!

It’s not good news.  It shows the prices of Needs, not Nices, are rising faster than the official inflation rates.  Quelle surprise.  Perish the thought politicians and civil servants would ever tell us the truth.

Prices falling in goods we want eg clothes and electronics.  Prices rising in goods we need eg energy and food.

Word of the day: #Biflation

How does this affect your investing decisions and strategies?  Read my other pieces on what you can do.

 

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8 Responses to Media reports costs of living rises as Good News!

  1. Gary (?) says:

    so when does the UK economy enter the Japanese deflationary death spiral?
    is it all down to the demographics?
    have a butchers at page four of this: http://www.boj.or.jp/en/announcements/press/koen_2013/data/ko130105a2.pdf

    • It’ll happen when it happens. See my other posts re #turningjapanese

      • Gary (?) says:

        No fun in not taking a punt with some specifics, here’s one

        Further signs of reducing inflation to appear if you look hard enough (the rent reduction on the flat I have just left in Islington is one I have noticed) but to be pretty much unnoticed by the public for the next year, largely because of the “good” news on property

        Completely avoidable and unnecessary mini blow-out top on UK and more specifically final bubble top in London property in 2016 after a full year of people desperate to part ways with the pension money they spent decades saving up following liberalisation of pensions in April 2015

        By then the deflationary trend is obvious and the money from pensions and people who hoped for a house price crash but bottled it (looks like that includes me) is all gone… no bid in the UK property market and no reason to make one, the ponzi just doesn’t work without inflation

        The ageing population continues to weigh down on public finances (and the bond market won’t let the government borrow to the ends of the earth as they finally see that public expenditure will be under greater pensions/health pressure), taxation has to go up which is deflationary for everything else

        Property and equities go down and this reinforces the deflationary trend as people have to *save up real money* for their conservatories/extensions/trading up costs rather than just relying on taking the future income of someone in the next generation. Similarly you actually have to pay off your mortgage yourself rather than just ignore it because you believe it will go away. Again deflationary and self-reinforcing.

        No major one/two/three year house price crash but just a long downward trend bottoming out in the early 2030s with the demographic trend – buying opportunity

        Does that sound plausible?

  2. Silver Bullet says:

    It is good news, if you’re a parasitic government that lives off other people’s hard work. The media is just an extension of the government, especially the BBC, which is funded by taxes. So what’s good for government is good for the BBC.

    Inflation = increased tax receipts = more money for Jonathan Davis, propaganda pusher.

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