Deflation news

[TimberWolf]

I've seen your post TimberWolf!

You'd better delete it mate before they get your nuts into a nutcracker...

I wondered if you had. I missed the operative word 'profit' in your post on my first read, and I can't be arsed to look into what profit these rail companies make, or what profit they don't make as the case may be.

[AtW]

I tuliped my pants at the thought of being sued by railway companies for libel

FTFY

[Freamon]

Rail season tickets burst through the £5,000 a year barrier

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Yes that scary deflation that Mr King was warning about is going to get us all in 2011

AtW you seem to be obsessed with the idea that inflation and prices are the same thing.

Let me give you a clue:

Prices are not inflation.

We can start there, and work our way towards a logical conclusion.

[AtW]

AtW you seem to be obsessed with the idea that inflation and prices are the same thing.

Let me give you a clue:

Prices are not inflation.

We can start there, and work our way towards a logical conclusion.

£5000 is inflationary milestone.

The inflation is in the article:

The Government allowed Southeastern to push up fares by an average of 7.8 per cent – three per cent above July’s Retail Price Index. But this masked higher increases approaching 13 per cent on some routes.

You are new here, so you don't know that I've got a few degrees in finance, business and real estate

[Freamon]

£5000 is inflationary milestone.

No, it isn't. Inflation is an expansion in the total amount of money and credit in circulation. An increase in the price of one thing (rail transport) does not constitute "inflation". An increase in the general price level of all things *may* be a *symptom* of inflation (although in this case it isn't, as money and credit in circulation is not increasing. Constant news reports of "banks not lending" are a clue as to why this may be).

The inflation is in the article:

RPI? RPI is a price index, not a measure of inflation.

You are new here, so you don't know that I've got a few degrees in finance, business and real estate

Ah, that explains why you might have some difficulty understanding these concepts. The best educated economists, businessmen, and in particular financiers and real estate developers have, of course, done a superb job of understanding the causes of the financial crisis and navigating those of us who have not benefited from education in these matters through the turbulence of the last few years. Not.

[MarillionFan]

Som £5k may be 20% of the average salary for the UK but you can bet your bottom dollar that the majority paying that are way way way above the average.

[Doggy Styles]

Inflation is an expansion in the total amount of money and credit in circulation. An increase in the price of one thing (rail transport) does not constitute "inflation". An increase in the general price level of all things *may* be a *symptom* of inflation (although in this case it isn't, as money and credit in circulation is not increasing. Constant news reports of "banks not lending" are a clue as to why this may be).

AtW is talking about price inflation of rail fares.

In that respect he is correct, and £5000 will be seen as a breakthrough by some people.

[AtW]

Som £5k may be 20% of the average salary for the UK but you can bet your bottom dollar that the majority paying that are way way way above the average.

The point it for less money in Germany people can travel all around the country rather than on some route - rail fares are a rip off in the UK despite being massively subsidised by taxpayer - once this support is withdrawn prices will go up 50% easily - probably more as less people will travel so companies will have to increase prices even more to make up for shortfall.

The only thing that deflates these days are wages - they are worth less and less.

[AtW]

RPI? RPI is a price index, not a measure of inflation.

Change in RPI is deemed measure of inflation - any change in price of the same product is inflation or deflation (unless it's seasonal moves).

[Freamon]

AtW is talking about price inflation of rail fares.

In that respect he is correct, and £5000 will be seen as a breakthrough by some people.

AtW refers to the "deflation Mr King warned about". An increase in rail fares is nothing to do with that, partly because rail fares are only one small part of the economy, but mostly because prices are not inflation.