Huge price hikes on the way for electricals

[eastern]

Have just heard over the weekend that the price of Electrical goods and basically any item from the Far East is going to increased by as much as 30%. I recently bought Futaba radio eqpt and I was told that it is going up by 20%, just in time for Xmas, so the 2.5% cut in the VAT rate is going to be cancelled out pretty smartly. Anyone heard anything similar?

[Buenchico]

The currency used for many (probably most) international transactions is the US dollar. Earlier this year, �1 would buy you nearly 2 dollars, so something priced at $30 would cost around �15. Now �1 only buys you about $1.5, so something priced at $30 will now cost around �20. Those sort of price increases will apply to all imports where the deals are done in dollars. So you can expect to see large price increases in many shops, not just electrical retailers.

Not all international trading deals are in dollars but the pound has also fallen rapidly against the Euro, the Yen and the Yuan (which are the principal alternative trading currencies) so the prices of all imported goods will rise at the point of import. Of course, many retailers may be forced to absorb some of the increases, as they compete for trade during a period of recession. Nevertheless, some retail price rises ar inevitable. Until such time as the UK adopts the Euro (which would provide a certain level of stability at times of turbulent currency trading) this country will always be exposed to the effects of rapid currency fluctuations.

Chris

[Mattk]

call me a cynic but could it be the retailers trying to drum up sales?!

[eastern]

Your a cynic Mattk! I have had sight of a price list for O.S. engines and they are all up by 30% as of december. So its not a crude ploy I assure you.