Inflation vs. Deflation
- Thread starter awgee_IHB
- Start date
no_vaseline_IHB
New member
I am currently inputing an invoice from a vendor.
My cost on products I buy from them at wholesale is lower by roughly 5% than the last time I purchased something from them, which would be the first week of December.
Yes, I'm keeping the difference.
My cost on products I buy from them at wholesale is lower by roughly 5% than the last time I purchased something from them, which would be the first week of December.
Yes, I'm keeping the difference.
AVRenter_IHB
New member
Anything electronic. I get daily emails from Newegg, TigerDirect, xPCgear with newly slashed prices. I'm guessing these companies have a glut of inventory and are cash starved so they're pulling out all the stops. Maybe once inventory dries up and the weak are killed off we may start seeing some increases.
upperlowerclass_IHB
New member
<a href="http://www.pcasd.com/the_us_government_will_not_choose_deflation">http://www.pcasd.com/the_us_government_will_not_choose_deflation</a>
upperlowerclass_IHB
New member
Oh and this will eventually make its way through fractional banking too... fun fun
<img src="http://i41.tinypic.com/2lj1bti.jpg" alt="" />
<img src="http://i41.tinypic.com/2lj1bti.jpg" alt="" />
Irvine_Lurker_IHB
New member
How about wage deflation? Last month FedEx announced they were cutting wages and some other notable companies have followed suit. Frankly, this worries me as wage <strong>inflation</strong> certainly helped to feed price inflation in the 70's. Not sure if there is a corollary with deflation...
Irvine_Lurker_IHB
New member
<a href="http://www.latimes.com/business/la-fi-rent8-2009jan08,0,5261091.story">Rents in Los Angeles</a> (and other areas) are also down.
Anonymous_IHB
New member
Informally, food prices seem to be down.
Some really good deals at Costco lately on higher end meats & seafood.
Regular old groceries (ex. milk) seem down as well.
Some really good deals at Costco lately on higher end meats & seafood.
Regular old groceries (ex. milk) seem down as well.
Yesterday, Mrs. CdM and myself were at "the District" to see the reader. We got there early, and wandered through the mall. First, no one was there. Second, Mrs. CdM noticed that all the retailers (Vans, Tillies, Hot Topic, Zumies, etc) are for the younger "allowance" set, and we wondered how much they were being allowed to spend by their parents. By the look of things, not very much. I mean, it was dead!
I have also wondered about wages. Economists still do not know why wages were "sticky" during the depression, but I have a feeling that we will se a drop in wages in this recession.
I have also wondered about wages. Economists still do not know why wages were "sticky" during the depression, but I have a feeling that we will se a drop in wages in this recession.
It's not something most here have probably noticed, but I have been able to buy certain rare coins for well below the grey sheet value. Someone mentioned hotels earlier in the thread. I just went to Las Vegas over Christmas and was able to stay at the Venetian for $119 a night. Prior to this trip, the cheapest rooms I ever got there was $199. I haven't experienced it first hand, but I've read that prices for new and used cars have been dropping rapidly.
ukyo116_IHB
New member
My work's cafeteria slowly raised prices on all food items. We used to be able to purchase salad for a flat rate of $4.20 in those large take out containers. Then they raised it a dollar a few weeks ago. So I switched to the cheap $2.49 sandwich we had, and they decreased the portions. And the soda in the vending machine went from $1 to $1.10.
ogredave_IHB
New member
Ah, that's one thing that's definitely down .. rooms in Vegas.
usctrojanman29_IHB
New member
Gasoline prices seem to be bucking the trend...up 30+ cents since the middle of last month.
stepping_up_IHB
New member
A few months back Home Depot started marking items in the store with a sign indicating a new lower price. They aren't sale items, rather the regular price has been lowered.
Awgee, forget the anecdotal evidence posted earlier. Here is something I just read from a site I subscribe to:
The producer price index fell 1.9% in December, a tenth of a percentage point less than expected. Excluding food and energy, producer prices increased 0.2%, also a tenth of a percentage point more than expected.
The readings were boosted in part by an increase in automobile prices, which jumped 1.2%. These figures of course seem out of whack with the recent behavior of commodity prices and the large amount of anecdotal evidence indicating that businesses are cutting prices. The disparity reflects the lag that exists between changes in commodity prices and finished goods prices. This is abundantly apparent in the so-called "pipeline" figures in the producer price report.
Specifically, the prices of goods at earlier stages of the production process have plunged. Prices of crude materials, which represent goods at the earliest stage of production, fell 5.3% in December following a 12.5% drop in November, 18.6% in October, and 6.0% in September.
Excluding food and energy, crude materials prices fell 2.2% in December following a record decline of 20.4% in November and 17.0% in October. Prior to recent months, the previous record -7.7% in December 1974, and decreases of more than 5% were rare.
At the middle stage of the production process, intermediate goods prices fell 4.2% in December, following a decrease of 4.3% in November and 3.9% in October. Core intermediate goods prices fell a record 3% in December following record declines of 2.3% in November and 1.7% in October.
All of these data point to sharp decreases in producer prices in the months to come. Going away for sure is the 4.3% year-over-year gain in core prices. It will eventually be replaced by numbers well south of zero.
The producer price index fell 1.9% in December, a tenth of a percentage point less than expected. Excluding food and energy, producer prices increased 0.2%, also a tenth of a percentage point more than expected.
The readings were boosted in part by an increase in automobile prices, which jumped 1.2%. These figures of course seem out of whack with the recent behavior of commodity prices and the large amount of anecdotal evidence indicating that businesses are cutting prices. The disparity reflects the lag that exists between changes in commodity prices and finished goods prices. This is abundantly apparent in the so-called "pipeline" figures in the producer price report.
Specifically, the prices of goods at earlier stages of the production process have plunged. Prices of crude materials, which represent goods at the earliest stage of production, fell 5.3% in December following a 12.5% drop in November, 18.6% in October, and 6.0% in September.
Excluding food and energy, crude materials prices fell 2.2% in December following a record decline of 20.4% in November and 17.0% in October. Prior to recent months, the previous record -7.7% in December 1974, and decreases of more than 5% were rare.
At the middle stage of the production process, intermediate goods prices fell 4.2% in December, following a decrease of 4.3% in November and 3.9% in October. Core intermediate goods prices fell a record 3% in December following record declines of 2.3% in November and 1.7% in October.
All of these data point to sharp decreases in producer prices in the months to come. Going away for sure is the 4.3% year-over-year gain in core prices. It will eventually be replaced by numbers well south of zero.