Sainsburys are price matching. If this leads to a downwards drift in the cost of the weekly shop will we hear renewed talk of deflation? Or is this good old cut throat competition as a result of consumers being squeezed – or is there no difference between the two? In good times the economists would tell us they are chasing market share. In bad times it is deflation. Surely deflation is where people put of buying today because tomorrow it will be cheaper – how long can one wait t purchase a box of cornflakes when the larder is bare?

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