Economic Analysis of Future Price Developments in the South West of Essay

Economic Analysis of Future Price Developments in the South West of England - Essay Example 2008, p. 3). The financial analysis takes account of the information that price expansions over those horizons are influenced mainly by the dealings of supply and demand in the goods, factor markets and services. GDP growth in the South West of England is likely to stay weak in the near term, before gradually intensification as households actual incomes recover, supported by sustained stimulus from monetary rule. â€Å"The South West Economic Profile is intended for all South West England partners working for the development of the regional economy. It provides a succinct, analytical account of the South West region in a way that can be related to the objectives and priorities set out in the Regional Economic Strategy† (South West Economic Profile n.d.). Following prices will be expected to increase in the near future; Domestic Price: â€Å"Domestic Pricing is a common but not necessarily accurate method of pricing exports. This type of pricing uses the domestic price of the product or service as a base and adds export costs, including packaging, shipping and insurance† (Basics of Exporting – Pricing, Quotations, Payment & Collections 2003). The considerable challenges of domestic price in South West of England faced by the euro area continue to pose an important risk to the domestic improvement. Domestic demand is prolonged relatively quickly in 2011. But much of that development was accounted for by unsustainably strong inventory accretion. But the drag on domestic expenses from tight credit situations and the economic consolidations are likely to persevere. The formidable threat posed to the euro continues as a challenge to the domestic recovery. The quantity of income saved by households remained significantly more than in the period leading up to the crisis. In the over all study, domestic price is expected to increase in high level. Market Price: Market price is the current price, as resolved by supply and demand, at which point of se rvices, goods etc., are perhaps sold or bought. â€Å"The UK power market, which has for several years lagged behind the large European markets in terms of traded volumes and churn, has seen a significant drop in churn and contraction in products traded in recent months, leading to concerns that new players are even less able to enter, and that the market is stagnating† (Broker 2012). The circumstances in London bank funding markets are better, but the costs of credit for companies and households have increased. Credit growth and financial structure remained weak. Since the present Inflation Report, the MPC has maintained bank rate about 0.5%, and market interest rates state that the expected timing of the future rise in bank rate had been increased. Oil Price: Presently, the oil prices of England are increasing slightly. â€Å"CPI inflation fell to 4.2% in December, down from 5.2% in September but still well above the 2% target. Inflation should continue to fall sharply at the start of 2012 as the impact of past rises in VAT and petrol prices drop out of the twelve-month comparison† (Overview of the Inflation Report February 2012 2012). Any major disturbance in oil and gas supply could cause an increase in energy prices. The way of price rises will depend on how firms set prices related to those expenses, and in particular the methods adopted by companies to re-establish their profit margins. The comparison of the past performance of oil price