When will the week pound effect Inflation...
Discussion
How long before inflation starts to rocket as a result of the week pound?
I read that Canon and Sony have already put up prices in Europe and the UK because both currencies have fallen against the Yen...
Ford and Vauxhall are putting up car prices in the UK due to the weakness of sterling.
A friend of mine runs a Watersports shop - he told me that the importers are putting up the prices of most kitesurfing gear by 35% from next month - the reason being due to the weak pound....
In the UK we import most goods - how long before infaltion is out of control?
No doubt Gordon simply fiddle the official figures by changing the contents of the basket e.g. replacing plasma tvs and ipods with houses?
I read that Canon and Sony have already put up prices in Europe and the UK because both currencies have fallen against the Yen...
Ford and Vauxhall are putting up car prices in the UK due to the weakness of sterling.
A friend of mine runs a Watersports shop - he told me that the importers are putting up the prices of most kitesurfing gear by 35% from next month - the reason being due to the weak pound....
In the UK we import most goods - how long before infaltion is out of control?
No doubt Gordon simply fiddle the official figures by changing the contents of the basket e.g. replacing plasma tvs and ipods with houses?
.jesusbuiltmycar said:
A friend of mine runs a Watersports shop - he told me that the importers are putting up the prices of most kitesurfing gear by 35% from next month - the reason being due to the weak pound....
Depends if your friend passes on those increased costs. Kitesurfing gear going up 35% won't have much impact on inflation as I assume it's discretionary spend.If fuel/food goes up then we have a problem.
But the weak pound hasn't put up either of those yet (and in fact the pound is a tad stronger of late than it was 2 months ago).
ipitythefool said:
jesusbuiltmycar said:
A friend of mine runs a Watersports shop - he told me that the importers are putting up the prices of most kitesurfing gear by 35% from next month - the reason being due to the weak pound....
Depends if your friend passes on those increased costs. Kitesurfing gear going up 35% won't have much impact on inflation as I assume it's discretionary spend.If fuel/food goes up then we have a problem.
But the weak pound hasn't put up either of those yet (and in fact the pound is a tad stronger of late than it was 2 months ago).
Kitesurfing gear was given as an example - if shops swallow most of this increase they will be left with little to no profit.
Currently inflation is measured using a variety of items - not necessarily food - and in recent times it has deliberatly avoided including fuel (petrol, gas electric etc). AFAIK consumer items such as game consoles, mp3 players, plasma TVs (discretionary spend) have been included in the basket to give a favourable figure for inflation. If the same basket is used then increases in imported goods will have a serious effect on these figures.
Looks like Apple is raising prices as well.....
telegrpah
telegrpah
telegraph said:
Apple has launched a new range of desktop computers, but come under fire for increasing its prices substantially in one of the first indications of how sterling's weakness will force up the price of consumer goods.
The Mac Mini, the company's entry level computer, for instance has gone up in price to £499, compared with £399 before. The 20 inch iMac now costs £949; the old price was £789.
The company said currency fluctuations, with pound falling in value, has forced up its cost. The American computer company, which has won an army of fans with its sleek designs, makes most of its computers in Taiwan.
This is the clearest sign yet that British consumers, used to consistently falling prices for clothes and consumer electronics made in the Far East over the last decade will have to start getting used to price rises. Most Far East currencies are pegged to the dollar, and the pound has fallen from $2 a year ago to $1.41 yesterday.
Marks & Spencer is one of many retailers to have warned clothes prices will soon start increasing.
Gadget experts said Apple's move was a brave one but that the improved technology inside the new machines was not good enough to explain such a large price increase.
Joe Minihane, at Stuff magazine, said: "The whole concept of the Mac Mini is to introduce more people to the world of Apple's excellent operating system. The spec sheet though, cannot justify the price."
Experts also said consumers were increasingly wary about paying Apple's already high prices.
Sales of Mac computers fell six per cent last month in the US compared with the same time last year, according to industry analysts at the NPD Group. Sales of Windows-based PCs, by contrast, were up 16 per cent on a year ago.
An spokesman for Apple said: "Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time."
The Mac Mini, the company's entry level computer, for instance has gone up in price to £499, compared with £399 before. The 20 inch iMac now costs £949; the old price was £789.
The company said currency fluctuations, with pound falling in value, has forced up its cost. The American computer company, which has won an army of fans with its sleek designs, makes most of its computers in Taiwan.
This is the clearest sign yet that British consumers, used to consistently falling prices for clothes and consumer electronics made in the Far East over the last decade will have to start getting used to price rises. Most Far East currencies are pegged to the dollar, and the pound has fallen from $2 a year ago to $1.41 yesterday.
Marks & Spencer is one of many retailers to have warned clothes prices will soon start increasing.
Gadget experts said Apple's move was a brave one but that the improved technology inside the new machines was not good enough to explain such a large price increase.
Joe Minihane, at Stuff magazine, said: "The whole concept of the Mac Mini is to introduce more people to the world of Apple's excellent operating system. The spec sheet though, cannot justify the price."
Experts also said consumers were increasingly wary about paying Apple's already high prices.
Sales of Mac computers fell six per cent last month in the US compared with the same time last year, according to industry analysts at the NPD Group. Sales of Windows-based PCs, by contrast, were up 16 per cent on a year ago.
An spokesman for Apple said: "Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time."
.Can't see inflation kicking off any time soon.
There just isn't enough aggregate demand to justify anyone passing on price hikes in the supply chain to the high street. Things like clothes, kite-surfing gear, etc, etc is all short-term discretionary spend, higher price, less sold. Retailers are also still de-stocking so it's unlikely they want to re-stock with things they can't sell, again, this is a downward pressure on prices.
We've taken the inflationary hit on fuel and food prices from last year, the falling £ has only blunted the decline in prices as the recession bit.
If inflation is going to increase, look at the autonomous expenditure items for any chance of serious price hikes. I really can't see any.
There just isn't enough aggregate demand to justify anyone passing on price hikes in the supply chain to the high street. Things like clothes, kite-surfing gear, etc, etc is all short-term discretionary spend, higher price, less sold. Retailers are also still de-stocking so it's unlikely they want to re-stock with things they can't sell, again, this is a downward pressure on prices.
We've taken the inflationary hit on fuel and food prices from last year, the falling £ has only blunted the decline in prices as the recession bit.
If inflation is going to increase, look at the autonomous expenditure items for any chance of serious price hikes. I really can't see any.
jesusbuiltmycar said:
A friend of mine runs a Watersports shop - he told me that the importers are putting up the prices of most kitesurfing gear by 35% from next month - the reason being due to the weak pound....
Which shop? I doubt I'll be buying any new gear this year. £1200 for a 12m kite!Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff