Deflation news

[DimPrawn]

How much is it worth now?

It's worth sheet.

[Pondlife]

I bought a takeaway last night

How much is it worth now?

[DodgyAgent]

Invest in China.

I've just taken out a 100k
investment bond.

Sorted.

I bought a takeaway last night

[doodab]

Of course the Chinese may just see this an opportunity to deal with the excess rural poor by letting them starve to death.

[TimberWolf]

What a rip-off money is, especially when left in the bank earning negative interest. How are they going to fiddle the official inflation figures when gadgets also go up in price? Add house prices to the inflation index, or fiddle with the weightings they apply to each entry?

[MarillionFan]

Invest in China.

I've just taken out a 100k
investment bond.

Sorted.

[AtW]

China inflation threat underestimated

The era in which cheap Chinese exports helped to keep prices down is now behind us, according to the insurance giant's fund division.

Instead, "as inflation becomes more and more of a concern in advanced economies, China is going to be making things worse," said Brian Coulton, an emerging markets strategist at LGIM.

While many commentators suggest Chinese price rises are peaking, Mr Coulton believes that Beijing is not on top of inflation – expected to come in at 5.5pc for March – which threatens a more painful tightening process to rein in prices than many expect.

"This means rising risk to the country's macroeconomic stability and of growth falling from the current 10pc a year to 4pc or 5pc." Mr Coulton said.

If China's economic growth does halve as feared, it could have serious implications for the global recovery. LGIM's argument is that soaring food prices are not a temporary driver of inflation, but reflect underlying pressures from rising demand rather than one-off supply shocks.

More from the source: China inflation threat underestimated - Telegraph

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What would the Gov say on this? Probably that it's a good thing as it would make UK industry more competitive...