May 23, 2016

DEFLATION CAN NOT BE OVERSTATED:

Food prices falling faster than official figures show (Patrick Collinson, 23 May 2016, The Guardian)


The price of food and drink may have fallen faster than official estimates, according to the government body charged with collecting the data.

The Office for National Statistics said the official consumer prices index (CPI) figure for food shows that prices have fallen by 3.3% since June 2014, while alcoholic drinks have dropped by 3%.

But a project set up by the ONS to "scrape" price data from the websites of Tesco, Sainsbury's and Waitrose found that between June 2014 and February 2016 food fell in price by 4.5%, while drinks were down 6.8% over the same period.

The gaps between the official and supermarket data are in some cases alarmingly wide, and may call into question the validity of the CPI numbers issued each month.

Posted by at May 23, 2016 3:37 PM

  

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