So Much For Deflation

Byron85

http://www.rte.ie/news/2010/0628/prices.html

Ireland has the second highest food and drink prices in the European Union, a new survey has found.

It's been said constantly over the last year or so that the prices of goods and services have been coming down yet we still somehow have some of the highest food prices in Europe??

We are still far too expensive by European standards so something has to give eventually. You cannot just cut wages across the board through taxes and then leave the price of regular goods at the same level that they are at now. If minimum wage is to be cut then the price of food etc also has to come down by a somewhat proportionate level.

Cookie_Monster

but minimum wage has to be cut before prices will come down
(other factors too obviously)

Byron85

Cookie_Monster wrote: »

but minimum wage has to be cut before prices will come down
(other factors too obviously)

Obviously but is there something that's stopping an across the board cut of wages and prices??

Cookie_Monster

T.W.H Byron wrote: »

Obviously but is there something that's stopping an across the board cut of wages and prices??

knowledge that Irish people will just pay it regardless. Tesco profit margins in Ireland are the highest across it world operations cos they know they can get away with it for example

oceanclub

Cookie_Monster wrote: »

but minimum wage has to be cut before prices will come down
(other factors too obviously)

Rents need to fall further too. Which means that house prices will fall more.

Ooops.

P.

Sleepy

T.W.H Byron wrote: »

Obviously but is there something that's stopping an across the board cut of wages and prices??

The Public Sector Unions.

rightwingdub

Cookie_Monster wrote: »

knowledge that Irish people will just pay it regardless. Tesco profit margins in Ireland are the highest across it world operations cos they know they can get away with it for example

Thats sad but true a lot of Irish people are too lazy to actually do anything about been ripped off in this country.

PirateShampoo

Cookie_Monster wrote: »

knowledge that Irish people will just pay it regardless. Tesco profit margins in Ireland are the highest across it world operations cos they know they can get away with it for example

lol when they cut there prices to beat the Irish competition people boycott claiming they for putting Irish company's out of business.

mike65

Sure this isn't news deflation here would need to run for several years to make a dent while certain areas are fenced off, like chemists presciptions and will never be as cheap as Portugal or Spain short of revolution.

killbillvol2

Sleepy wrote: »

The Public Sector Unions.

Correct. Those ****ers set prices for food and drink too. Is there no end to their malevolent influence? :rolleyes:

Sleepy

If you don't understand the positive pressure placed on the price index of unsustainable wages for a large section of the population then go read a Leaving Cert economics text.

If you do, stop talking through your arse.

Jaysoose

The only people claiming that goods have come down are the goverment...need i say any more?

ednwireland

prices have come down but(i think my grocery bill isnt as bad as it was but i tend to buy and eat whats on offer at the moment )

BUT all the figures i have seen have shown inflation in any gov. services even when showig skight deflation in cost of goods.
unfortunately until that cost is addressed there wont be a significant drop in anything else

djpbarry

Jaysoose wrote: »

The only people claiming that goods have come down are the goverment...

...and the CSO:

CSO wrote:

Prices on average, as measured by the CPI, were 1.1% lower in May compared with May 2009.
...
The most notable changes in the year were decreases in Clothing & Footwear (-12.6%), Food & Non-Alcoholic Beverages (-6.3%) and Furnishings, Household Equipment & Routine Household Maintenance (-4.6%). There were increases in Education (+9.1%), Transport (+4.9%) and Housing, Water, Electricity, Gas & Other Fuels (+3.7%). The annual rate of inflation for Services was 0.5% in the year to May, while Goods decreased by 2.8%.

http://www.cso.ie/releasespublications/documents/prices/current/cpi.pdf

Guy:Incognito

This is the same article beign discussed in rip off ireland. The survey was done a year ago , the country has changed a fair bit in that time.