No hyperinflation in Europe

The following are 12 month price changes as monitored by Bild, the biggest daily newspaper in Germany (comparable to Britain's "Sun" or "Mirror" in style and target audience I guess). http://www.bild.de/BILD/ratgeber/geld-karriere/2009/07/04/preissturz/jetzt-kaufen-oder-abwarten.html

They have dozens of items listed, I translated a few randomly, a few more in food items.

Clothing:

Poloshirt Ladied (red) C&A 4,50 Euro –50%
Kid's shirt (red, yellow) C&A 3,50 Euro –50%
Kid's Jacket (khaki) C&A 9 Euro –50%

Food:

Orange-Lemonade (Flirt) Aldi Süd 0,29 Euro –25%
Prosecco (Spumante) Aldi Süd 4,99 Euro –9%
Rice (Le Gusto Parboiled) Aldi Süd 1,09 Euro –8,4%
Herb Butter (Milsani) Aldi Nord 0,39 Euro –13%
BBQ Sauce (Delokato)Aldi Nord 0,45 Euro –18%
Turkey Sausages (Böklunder) Aldi Nord 1,79 Euro –10%
Butter (Irish) Aldi Nord 0,85 Euro +10,5%
Joghurt (Milbona)Lidl 0,29 Euro –17%
Pork BBQ Kebabs Lidl 2,85 Euro –10%
Rumpsteaks Lidl 6,29 Euro –7%
Oliveoil (Luccese)Lidl 2,99 Euro –11%
Boneless Chicken Breast Lidl 1,99 Euro –20%
Coffee (Melitta Auslese)Plus 2,59 Euro –39%
Pasta (Buitoni) Plus 0,69 Euro –46%
Cola (Stardrink) Plus 0,29 Euro –25%
Joghurt (Elite) Penny 0,39 Euro –13%
Creamcheese (Almtaler) Penny 0,79 Euro –11%

Furniture:

Chandelier (6 bulbs) Karstadt 49,99 Euro –44%
Halogen Standing Lamp Karstadt 39,99 Euro –20%
Matress (Dunlopillo) Karstadt 499 Euro –50%

Consumer Electronics:

Headphones (Sennheiser) MediMax 5 Euro –37,5%
Ladies' hair removal system (Philips) MediMax 19 Euro –33,3%
Notebok Fujitsu-Siemens LifeBook S7220 idealo 601,98 Euro –62%

I can't wait for hyperinflation, looks like it must be right around the corner.

 

when money-velocity and confidence and employment will re-gain strength...then hyper-inflation

too much money outside

money-velocity is the turning point

 

Makloda, "ve mussen maintain ze highest level of price stability. ve mussen remain vigilant!"

(said in a Junker accent)

 

If the clothes just go back to what they cost one year ago, that'll be a 100% increase. Will you eat crow if they do?

 

Yes, prices are dropping like a rock in Germany. Yet, people are talking about inflation all the time. Defla...what? Never heard.

Some gold bugs here in Germany are even suggesting that the hyperinflation has already started. I don't know if this is funny or just sad - but it is simply delusional, that's for sure.

 

Sure, but I bet once that happens the gold bugs will declare victory and a state of hyperinflation

 

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Good post.....

This is very interesting and is proof positive that when a high % of the total market is ejected....then all prices tow the line....
not just high priced credit driven items....

40/70's means ....all of the prices = D

 

That's how it SHOULD work.

I don't perceive anything like this in my locale... other than the usual decline in electronics, small dip in RE and auto prices...

 

I live in Switzerland and things mostly go up here at the grocery store (despite what the media report) . My favorite chocolate went from CHF 1.20 per 100gr 4 years ago to CHF 1.70 today.
So I spend about CHF 2-3 more per week in chocolate.

Also the poster only list items from Lidl and Aldi, those are deep discounters comparable to Costco or Trader Joe's (but more at the low end) so they are always on a price war with the bigger chains , their prices probably go down faster than elsewhere. Not an accurate representation of what's going on in all grocery stores .

 

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D's distribution is somewhat uneven....in that not all areas are equal....

There are still probably some pockets relatively unscathed....

But the prospects of staying unscathed seem to be just a matter of time....

However there are islands....

If an area whose employ is relatively unchanged ....then why should it change ?

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However ....other ies .....when there is dominance in markets ie smaller countries containing small monopolies are very slow to change even though economics change significantly....
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Other ies....MCD gains while other restaurants lose....When is it that MCD loses ?

ie ...the trend from high price items to low price items has to occur....and some of the low price items could even advance.....

Loss of wealth creates more demand shifts.....which means demand/supply still rules.....

This is when the word "average" paints over the differing underlying....