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  Tesco, indeed - companies that provide basic necessities at low prices do tend to do well out of recessions. Fund managers tend to increase their weighting in basics at such times for this reason.
  
  As for the deflation figure. Again not unexpected due to the massive fall in interest rates and reduced housing costs (this was an RPI figure). What we need to worry about now is what is coming within the next two years, the potential for hyper-inflation due to 'quantitive easing'. One report forecasts an 8% inflation rate, not high by historical terms, but that does not necessarily represent the ceiling and how far it rises depends on just how out of control public spending is allowed to remain. This is a very good reason for massive public spending cuts. I notice that it is being trailed that Darling will announce some, quite modest, spending cuts, not enough and too late though.

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