UK inflation at its highest level in almost 3 decades!

Much better savings rates hopefully!

Increased poverty and even poorer diets!

Much better savings rates hopefully!

Those on fixed incomes won't be so gleeful when the cost of basics rises faster than their pensions or other income.

Inflation erodes the savings of those who have them in later life, and makes it impossible for young people to save for the future.

ayse

Increased poverty and even poorer diets!

Yes, and those who can't afford to save anyway will suffer most of all.

Poppyred

Much better savings rates hopefully!

In terms of economics it’s not demand inflation ie prices going up because wages are going up and commodities following these prices. The usual way to prevent demand inflation is to raise interest rates to lower spending and cool the economy. At least that’s my understanding but if that’s not quite right perhaps someone else can explain better.

This is global inflation due to global energy costs rising. There is a good explanation here.

www.bbc.co.uk/news/business-12196322

So the triple lock should ensure state pensions increase with inflation... But wasn't kept in line with wage increases last year, so do we think the Chancellor will weedle his way out paying a 5.4% increase?

Doodledog

*Much better savings rates hopefully!*

Those on fixed incomes won't be so gleeful when the cost of basics rises faster than their pensions or other income.

Inflation erodes the savings of those who have them in later life, and makes it impossible for young people to save for the future.

We are not all gleeful about the prospect. I have never earned enough to be able to save very much at all. Pay all my bills yes, but have noticed, through this global crisis, food has risen in price, oh well looks like it’s back to egg and chips for a while. Local sourced of course. No I’m not laughing.

No, my post was in response to the one about savings rates.

Lincslass

Doodledog

Much better savings rates hopefully!

Those on fixed incomes won't be so gleeful when the cost of basics rises faster than their pensions or other income.

Inflation erodes the savings of those who have them in later life, and makes it impossible for young people to save for the future.

We are not all gleeful about the prospect. I have never earned enough to be able to save very much at all. Pay all my bills yes, but have noticed, through this global crisis, food has risen in price, oh well looks like it’s back to egg and chips for a while. Local sourced of course. No I’m not laughing.

Me neither.

I can’t see how raising interest rates will help either. It will make housing more expensive, reduce demand and could possibly lead to a recession. I think you were happy with Brexit but the problems at the ports will certainly not help in this situation.

The Chancellor very kindly cancelled the triple lock so pensions will certainly not match inflation. I think I remember reading that (wage) inflation in September stood at 8%. If the triple lock was still in place then that would be the increase in April 2022. The government rate for pension increase has been set at 3.1% so we will all be much worse off.

DH has just been to the market to get a new battery for his watch. The guy selling them said the cost has gone up 30% and will soon go up another 15% and is totally down to leaving the EU.

Poppyred

Much better savings rates hopefully!

I have to say, I have been complaining bitterly about the 0.001 saving rate on my modest savings. But your comment did make me feel VERY uncomfortable, in the context. We are talking here about the impending increase in poverty for the most vulnerable in society, so NO I just can't rejoice.

With the price of imports increasing due to goods being held up at the border (due to outdated UK border software),

I think you'll find it's more due to the vastly increased paperwork needed since we have left the Single Market and the Custom's Union. The 'outdated software' was working pretty well before the UK introduced these barriers to trade. Replaced practically non existent 'EU red tape' with a great deal of UK 'red tape'. Where were the 15 mile queues and hours (even days) of waiting at ferry ports before 1st January?

P.S I thought that everything was going to get much cheaper after Brexit...

The BBC are reporting today that there are 1.2 million less people in employment than before the pandemic. Unemployment hasn't risen so this is due to more people choosing to be economically inactive but not claiming benefits - lots of people over 50 fall into this category.

A third of the shortfall in the employment market is attributed to a lack of immigrants due to Brexit and Covid.

One of the sectors worst hit is healthcare.
www.bbc.co.uk/news/business-60039923

Anyone remember when the interest rate was 13% ? Brilliant for savers ! This was the mid-80's I think.

MaizieD I didn't envisage cheaper at all, in fact it's going to be tough going in order to recoup the cost of leaving the EU. I knew it would come !

I remember that EllanVannin. I'd just got my first mortgage!!

Many countries are experiencing higher than usual inflation rates so not all done to Brexit more likely high energy costs

There was an elderly lady on twitter explaining how she lives on her own, and how the cost of living is impacting on her ability to live any sort of civilised existence.

Her weekly shopping has already risen from £35 to £47, and she can no longer afford to use her heating.

I suspect that, that poor soul has the basic pension plus benefit to live on, although she didn’t say.

She won’t be the only one by far.

There is going to be dreadful hardship

rosie1959

Many countries are experiencing higher than usual inflation rates so not all done to Brexit more likely high energy costs

The market trader was adamant that it was down to brexit.

MayBee70

rosie1959

Many countries are experiencing higher than usual inflation rates so not all done to Brexit more likely high energy costs

The market trader was adamant that it was down to brexit.

It probably was in his case but I was talking more generally for instance the USA have soaring inflation also countries in Europe including Germany
We are not the only country being affected

It’s not relevant to you that other countries are affected if you are the poor soul or family with inadequate food and heating. Different countries use different strategies to mitigate the impact of rising inflation on the poorest, this country needs to do the same. The plan apparently is to make it harder to get universal credit to force people back to work, which won’t help those people on very small pensions.

We are the only country who are going through this period of soaring inflation AND Brexit.

I put aside £20 a week for a month then do a bulk shop---Asda delivery as today. Everything I have will last another month and beyond then I do the same again.
In between times I can pay a bill or two.
This week with Asda I had a £10 off voucher so that was another saving. Fridge and freezer are well stocked up. Cat food and all.

MayBee70

DH has just been to the market to get a new battery for his watch. The guy selling them said the cost has gone up 30% and will soon go up another 15% and is totally down to leaving the EU.

Really, thought watch batteries were made in China, not the EU.