UK: David smith - Economic truths - With a smile and with a discount - Retailers have been steadily cutting ...

David smith - Economic truths - With a smile and with a discount - Retailers have been steadily cutting the price of goods, but interest rates will not come down until the services sector follows suit.

Over the years I have noticed a curious phenomenon. Whenever I write about the low level to which inflation has fallen, I am guaranteed at least a couple of letters from people disputing the figures and pointing to all the price increases (usually rent, rates, rail fares, etc) that they have faced.