Within 12 hours of last night’s Slogpost about the output glut >> retail over-investment >> falling real wages knot comes the UK deflation data. It reads as if I might have ‘fixed’ it myself….along with the media commentary about it.
The producer price index is further into deflation than expected, and all but the cheapest retail distributors are in pain, having seen price deflation at the pos of 1.9%. The one exception in the food sector – Sainsbury – has bucked the trend for now with massive Capex investment in refurbishment and advertising – all fuelled by cheap borrowing. And thanks to falling hours and wage values, Lidl and the smaller discounters are going from strength to strength.
Cut now to the BBCNews channel business slot, and this classic example of dictated news analysis from the anchor lady, having just interviewed a stats pointy-head early this afternoon:
“So then,” she asserted, “It looks like a bonus for shoppers, and a much cheaper cost of filling up the trolley this Christmas”.
“Yes, that’s right,” said the sp-h, who then instantly disappeared before he could venture to suggest “on the other hand”.
From the rising percentage of US firms losing margins or downright money to overvalued bourses across the globe, shunned junk bonds and beyond, the ranks of Apocalyptic horsemen continue to swell. You can step aside or you can keep those fingers firmly inserted in the ears. What you can’t pretend any longer is that the sound of galloping hooves is nothing more than something put out by the BBC’s special effects department.