Inflation vs Deflation

official definition of deflation is negative inflation. so how can a falling inflation rate be deflation if its still positive inflation? ***ing moron.
 
N Rothschild said:
official definition of deflation is negative inflation. so how can a falling inflation rate be deflation if its still positive inflation? ***ing moron.
Click to expand...

:LOL: You are as clear as mud... Clever cloggs you ;)

If we didn't have enough to deal with we now have negative inflation!!!

Look inflate deflate reflate disflate all hot air. Do you know anything about the English language?
 
no, but you clearly do.

on the other hand, i can trade, you cant..think i will sleep easy tonight with my **** English :)

negative inflation is just another word for the inflation rate being less than 0. i.e deflation. 3%, 2%, 1% inflation year on year is not deflation, that's right, its disinflation.
 
N Rothschild said:
no, but you clearly do.

on the other hand, i can trade, you cant..think i will sleep easy tonight with my **** English :)

negative inflation is just another word for the inflation rate being less than 0. i.e deflation. 3%, 2%, 1% inflation year on year is not deflation, that's right, its disinflation.
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I'm still not clear on the disinflation / deflation issue. Looking at the gramatical structure of words accepted in the science physics world I thought may bring clarity to all these terms.

But dude, you show your self up to be the non-thinking regurgitating baffoon you claim not to be.


Negative inflation I understand. Below zero and I can accept that.

However, the term deflation gramatically can be ambigious. As slowing down of inflation is not necessarily negative inflation. Thus the terms needs to be clarified. I thought the physical term change in velocity is negative is pretty good. The direction is still forward though. Going backwards beyond point 0 would be reverse.

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Seems prices were in deflationary period from Sept - June and now they are inflationary again.

So disinflation to me would be negative inflation. Here is some grammer for you. I had to double check my understanding but dis before the word implies not; opposite from/of. Thus the opposite of positive is negative.

http://www.headsupenglish.com/skillbuilders/grammar/prefixes.pdf

So I beg to differ with your interpretations of deflation and disinflation purely on grammer and structure of words.


You capiche?
 
Atilla said:
dis before the word implies not; opposite from/of. Thus the opposite of positive is negative.
Click to expand...

No it isn't, its dispositive.

But really, get over it. John Humphrys has written a book called "Lost for Words" that I'm sure you will enjoy, but I found it pretty much the musings of a Language Luddite.
 
disinflation has occurred over the last 2 decades, not the last year.

and once again i don't really care what you think as it has no barring on me making a living. and once again if you spent more time listening to me instead of thinking you know it all you could take that leap into profitable trading, m'kay

seeing you cant get your head round it maybe you should start at the basics before trying to debate it. http://en.wikipedia.org/wiki/Disinflation
 
I don't believe these low inflation figures spewed out the govt and their agencies.
Money don't go as far as before, thats a fact
Most things seem to have gone up in price a hell of a lot in the last 5 years.
I remember when I was a lad (albeit more than 5 yrs ago) I used to go down the local bakers for an apple turnover on Saturday morning - they were sixpence. You Try to get that deal now!!!!
 
glyder said:
I don't believe these low inflation figures spewed out the govt and their agencies.
Money don't go as far as before, thats a fact
Most things seem to have gone up in price a hell of a lot in the last 5 years.
I remember when I was a lad (albeit more than 5 yrs ago) I used to go down the local bakers for an apple turnover on Saturday morning - they were sixpence. You Try to get that deal now!!!!
Click to expand...
Do you remember how much it cost to fly to somewhere in Europe back then?
 
glyder said:
I don't believe these low inflation figures spewed out the govt and their agencies.
Money don't go as far as before, thats a fact
Most things seem to have gone up in price a hell of a lot in the last 5 years.
I remember when I was a lad (albeit more than 5 yrs ago) I used to go down the local bakers for an apple turnover on Saturday morning - they were sixpence. You Try to get that deal now!!!!
Click to expand...

its all relative though. may have been 6 pence but as a proportion of the money in your pocket, no more than it is now! well maybe it is but not by much. Not like you woulda had a tenner in your pocker while buying 6p apple turnovers
 
Inflation is built into the system though, isn't it?
That 2% BoE inflation target is just that - it's not a maximum.

With the ECB it is meant to be a maximum, I believe.
Not that it is exactly cheap to live in Euroland, by and large.

The inflation target
The inflation target of 2% is expressed in terms of an annual rate of inflation based on the Consumer Prices Index (CPI). The remit is not to achieve the lowest possible inflation rate. Inflation below the target of 2% is judged to be just as bad as inflation above the target. The inflation target is therefore symmetrical.
Click to expand...

http://www.bankofengland.co.uk/monetarypolicy/framework.htm
 
Martinghoul said:
Do you remember how much it cost to fly to somewhere in Europe back then?
Click to expand...


Hi Mghoul, I don't quite remember the price of flights that far back - but a bit later on,in the early 80s it could cost £250 for a return to say Berlin or Amsterdam, so yes I take your point some things are cheaper / more affordable (though Ryanair etc headline prices need taking with a huge pinch of salt, and the final seats on any 'cheap' flight can be pricey).
 
N Rothschild said:
its all relative though. may have been 6 pence but as a proportion of the money in your pocket, no more than it is now! well maybe it is but not by much. Not like you woulda had a tenner in your pocker while buying 6p apple turnovers
Click to expand...


I agree - but doesn't that back the argument that inflation has been still well alive and kicking despite govt figures showing it is decreasing or disinflating or whatever we may Call it.?
 
glyder said:
I agree - but doesn't that back the argument that inflation has been still well alive and kicking despite govt figures showing it is decreasing or disinflating or whatever we may Call it.?
Click to expand...


Billions pumped into the economy when manufacturing output and production fell or/is continuing to fall can only lead to one out come.
 
http://www.bbc.co.uk/news/business-11294957

CPI = 3.1%

RPI = 4.7%

VAT increase yet to hit the shops coupled with price of oil whilst the economy is in the doldrums.

Food and now textile commodities set to follow suit...

Yet the biggest threat to the global economy is deflation - still...

Perhaps stagflation = staunted deflation who knows...

However, with trillions of billions slushing around in the economy with reduced output in the last three years can only lead to one destination...

Next few years are going to be what is termed creatively destructive... We are on the cusp of a new era...

Things can only get much better. Don't look back. (y)
 
xtraderbrokers said:
Hi there, you can read this : http://www.themoneyalert.com/inflationdeflation.html
It explain about the Inflation vs Deflation so details. thanks
Click to expand...

Very good concise article.

At last a correct definition of deflation - imho...

Deflation

In general, deflation is when the average price of goods falls. When the
inflation rate falls below zero, indicating negative inflation, we know that there
has been deflation. Remember that the inflation rate is calculated based on
the change in the Consumer Price Index, or CPI.

That is deflation is not slowing down of inflation but negative inflation. :!:
 
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