Monday February 13, 2012

JAPAN NEWS AND DISCUSSION

Wholesale prices fall 6.6% in June

Business Jul. 10, 2009 - 11:10AM JST ( 3 )

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AltriaJul. 10, 2009 - 01:40PM JST

That's why its a good idea to shop at a wholesaler like Costco!
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stirfryJul. 10, 2009 - 01:57PM JST

deflation is a consumers best friend
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ThonTaddeoJul. 10, 2009 - 05:22PM JST

It can also lead consumers to put off purchases on the expectation that prices will fall further, and increase debt burdens.

Government propaganda.

Only if the fall in price were so large as to outweigh the increased utility of having the product now rather than some months or years from now would this be a factor.

Would you put off buying a bicycle for Y10,660 today knowing that you could get it for a flat Y10,000 a year from now? Of course not -- to gain a paltry 6.6%, you'd have to live without the bike for a whole year! Even with electronic goods, whose prices fall at rates unimaginable in other sectors, nobody puts off buying something because it'll be cheaper in a year. They might time their purchase to coincide with a price drop, but even that's limited to the serious cognoscenti.

Inflation has the same effect in reverse; people will spend money unnecessarily before its value is stolen by the hidden tax of inflation. But we don't see the government complaining about that, now do we?