THE DEFLATION IS THE REFLECTION OF AN ECONOMY THAT DOESN'T HOLD BACK

The Index of Prices of Consumption (IPC) it lowered their rate inter annual, until -1,3%, due mainly to the descent of the prices of the gasoline, of the gasoil for heating and of the gas and to the winter discounts in dress and footwear, as he has informed this Friday the INE. The statistical organism rises this way in a tenth the early fact at the end of January, when it estimated that the rate inter annual of the first month of the year could have been located in a -1, 4%. With the fact of January, the IPC inter annual chains its seventh rate negative after -0,3%, -0,5%, -0,2%, -0,1%, -0,4% and -1% of July, August, September, October, November and December, respectively. It is the ninth time in 16 months in that the prices show rates negative inter annuals.   

In spite of everything, the Government has discarded that the economy is in a situation of structural deflation and it considers that to have a negative IPC as consequence of the fall of the price of the petroleum is something good for the Spanish economy, because he is reflected in the consumption prices and in the scale of payments. The government takes out tip to all that happens and it takes it to his triumphalism and this is to play dirty because if they believe it to him they don't make to improve and if they make it to cover his miseries the result it is the same one we don't leave the stagnation. 

It is curious that what he worries about so much to the BCE as it is the inflation absence or it even sanded it European deflation, the Spanish government finds it stupendous and he tells us that the one that they lower the prices is good for the recovery of the Spanish economy the truth is that I don't know where they will have taken out the title of economic, the government's experts. The deflation in the prices always denotes a drop in the consumption and therefore a null recovery in the social economy. Alone I grant an excuse part to this theory in what concerns to the petroleum and derived products but nothing else. 

The deflation that suffers Spain and the UE the one that him blackish in the shoe to the president of the BCE, it is product that there is not social consumption and the companies don't have another exit that to reduce prices because if not they drop sales and this drags to the drop the possibility to make in front of the fixed costs of the same ones (those that are always invariable manufacture more and/or bandages less). 

The European companies and Spaniards should pay interests, rents, wages, blindfold or manufacture more or less, before the current recession the companies what they cannot make is to stop to cover these fixed costs and the only thing that they have left it is to sacrifice variable costs and sale prices, to find a balance that allows them to remain in movement until the consumption conditions change. This is what is happening and for this reason there is deflation and for this reason the BCE this concerned one. 

The European companies lower prices continually because otherwise they lower them the sales and the revenues don't cover them the fixed costs when lowering the sale prices they recover sales but they win less this causes that they consume less indirect costs and they also try to reduce in what they can the fixed costs. This causes a deterioration in the tremendous global economy because they lower the business volumes in the industries they lower the investments and he says goodbye personal instead of hiring. For that reason in bad the "non inflation" this indicates that the economy of a country doesn't move or even that it falls. 

Statistic has attributed the cutting inter annual of the IPC in January to the behavior of the transport that reduced its rate more than two points regarding December, until -7,7%, for the depreciation of the fuels and lubricant. And let us don't make a mistake it also influences that the trade fall makes that the companies lower prices to be more competitive among them so that they hire them more transport the slope of the fuels he helps them to be able to make this political one but it is not anything good because with the slope of prices, he goes annexed the slope of gross benefits and with it finds difficult them to it more to make for example in front of their financial costs. 

They are lowering all the prices practically in all the consumption sectors so much industrial as commercial and the excuse of the petroleum is not enough, in the sector of the housing it is said that for the slope of the prices of the gasoil for heating and of the gas, there had been a slope of -0.1% and in spite of this opinion so positive I ask to the technicians of the state as it is that the energy poverty extends more and more in the society it won't be that it happens the same thing the energy suppliers they have to contain the prices because otherwise they drop the consumption. 

The same raisin with the dress and footwear that it registered a rate inter annual of -0, 1%, tenth three inferior to that of December, for the winter discounts, and with the foods that reduced a tenth their rate, until -0, 4%, for the fresh fish, the fresh fruits and the vegetables and fresh vegetables. In definitive if all the prices lower and this was the positive thing that he wants to make us see the government the Spanish society their consumption it would increase they would have less difficulties to arrive in order to month and for consequence more happiness in the consumption and this doesn't pass the consumption it is stagnated and the poverty extends in the society, it is this that he makes that the IPC lowers because if he doesn't make it we cannot survive neither the companies neither the society goes if they don't believe me says it to the Mr. Draghi because he is very concerned, so much that it will put 60,000 million monthly Eurus so that the prices don't lower more.