Is the current economic climate as an excuse to rip us off?

[Jason Bourne]

Oh that's nice, have you started bathing again? You're starting to pong a bit

 

Not started bathing again yet

[Jason Bourne]

And there's add some water to a handful of ordinary rice (add a bit of flavouring and maybe an egg too) that will cost you about 12p.

 

Hold on a second, are you implying I eat my rice raw?

[Vague_Boy]

I have noticed, as have other people no doubt the big price increases in products. Are we being ripped off, prices no longer go up by a couple of pence but as in the case of Hendersons relish at Asda, an 18p increase from £1.39 to £1.57. They are not alone, I saw jeans at M & S that have gone up by almost 20% the meatloaf at Morrisons hot food counter went up from £1.39 a few months ago to about £1.80 I think last time I looked. Carbonated drinks like coke and pepsi are £1.78 for 2 litres, these always seem to go up by about 10p when they go up. Chocolate prices and sweets go up, not by as much but they cut the size of the bar down as well. Beer used to go up by about 2p a pint now it is usually around 5p minimum. I am not even going to mention the utility companies who see the consumer as cash cows. I know prices of raw materials have gone up but how can they justify such large price increases?

It's called inflation. It's what happens when governments turn on the printing presses to "stimulate" the economy.

 

Why Printing Money Causes Inflation

 

Oh, and keep interest rates at absurd lows.

 

How interest rates fight inflation

 

Like many "unexpected" things, it was predicted years ago.

 

China in 2009 warned the US over its money printing:

 

"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard"

LINK

 

And two years later, what has happened?

 

Investor Marc Faber was advising people to get into agricultural commodities years ago. This is an investment tip he gave in 2009 (link).

 

He's also placing the blame for high food inflation at the door of money printing:

 

“We have money printing around the world, and that has led to very high food inflation and inflation in energy prices," Faber points out. "In low-income countries like China, India, Vietnam and so forth, energy and food account for a much larger portion of personal disposable income than in the United States."

LINK

 

UK Inflation CPI 4%, RPI 5.1%, Real 6.6%, Pressure Building on Wage Price Spiral

 

Despite your apparent ingratitude, the supermarkets have been protecting you from the real impact of rising commodity prices (i.e. sugar up 62%, wheat 55%).

 

The big grocery chains manage to keep a lid on price inflation by absorbing some of the rising prices themselves, or finding ways to cut prices of goods in other areas - such as CDs, clothing and household goods - in an effort to flatten out commodity price spikes. But if the price increases keep coming through, supermarkets are going to find it harder not to pass on the hikes to customers.

LINK

 

And that was written back in 2008!

[altus]

But then you've got to mix amongst poor people, and nobody wants to be seen to be doing that.

 

Do those discount stores offer a home delivery service?

 

Then you'd have a van with Primark in big letters on the side coming to your house. What would the neighbours think!

[Grandad.Malky]

It's called inflation. It's what happens when governments turn on the printing presses to "stimulate" the economy.

 

Why Printing Money Causes Inflation

 

Oh, and keep interest rates at absurd lows.

 

!

 

That would never happen here would it ………….. oops hold on.

 

UK interest rates are currently at 0.5% - the lowest level in the Bank of England's 315-year history.

 

The dramatic series of cuts was aimed at easing the credit crunch and getting the banks to lend again.

 

But that did not happen, at least not to the extent that the Bank thought was necessary to revive consumer spending and economic growth.

So the Bank has expanded the amount of money in the system by £200bn through a process known as "quantitative easing

[The Joker]

Then you'd have a van with Primark in big letters on the side coming to your house. What would the neighbours think!

 

Mine would probably think I'd gone all upmarket

[terrybnd]

Agree with Vague Boy 100%.

 

Folk should look into where money comes from - as in most think it's the Bank of England or the government.

 

Nope. It comes out of thin air by the banks themselves. They make up money but make money from that (literally hard cash) from us lot which they then put back into the system.

 

And they're all licensed to do so by our governments - and folk wonder why they're had over a barrel by them?

 

The whole system is a sad state of affairs

[Darth Vader]

And there's add some water to a handful of ordinary rice (add a bit of flavouring and maybe an egg too) that will cost you about 12p.

 

Is there only me, on reading down this thread, who thought 'ugh, what sort of a deodorant is that?'

[GrapeApe]

I have noticed, as have other people no doubt the big price increases in products. Are we being ripped off, prices no longer go up by a couple of pence but as in the case of Hendersons relish at Asda, an 18p increase from £1.39 to £1.57. They are not alone, I saw jeans at M & S that have gone up by almost 20% the meatloaf at Morrisons hot food counter went up from £1.39 a few months ago to about £1.80 I think last time I looked. Carbonated drinks like coke and pepsi are £1.78 for 2 litres, these always seem to go up by about 10p when they go up. Chocolate prices and sweets go up, not by as much but they cut the size of the bar down as well. Beer used to go up by about 2p a pint now it is usually around 5p minimum. I am not even going to mention the utility companies who see the consumer as cash cows. I know prices of raw materials have gone up but how can they justify such large price increases? What products have you bought that have gone up by a big price increase, or stopped buying because of the price increases?

 

Hold the front page, Inflation exists.