High Inflation.

Joseanne

Katie59

The value of sterling slumped on Friday to the lowest for 2 yrs, making imports even more expensive.

Really? Oh dear.
I remember only in February we were getting 1.20 euros to the pound, now I've just checked it's 0.85. "Can't do Maths" but I think that's about a third less?
So how is it lots of people are still able to afford the increased price holidays and the additional amount their spending money costs them?

I think you've got your fractions upside down .

Currently it's about 1.17 Euros to the pound

Sterling has only just plummeted. People have had their holidays booked for weeks, if not months. Most people don't just go on a whim, they plan and book in advance.

Which makes it ridiculous to query how they are still able to afford the increased price. It wasn't 'increased' at all when they booked it. Sterling was still at about 1.20 euros last week...

Joseanne

Katie59

The value of sterling slumped on Friday to the lowest for 2 yrs, making imports even more expensive.

Really? Oh dear.
I remember only in February we were getting 1.20 euros to the pound, now I've just checked it's 0.85. "Can't do Maths" but I think that's about a third less?
So how is it lots of people are still able to afford the increased price holidays and the additional amount their spending money costs them?

Joseanne my guess is that having not been abroad on holiday for over two years now, people will have saved enough for a blowout holiday, and are really going to town. After that, they will be back to reality. Retail sales are down already, and unless things change drastically by the autumn we are going to be in a very bad place.

Katie59

The value of sterling slumped on Friday to the lowest for 2 yrs, making imports even more expensive.

Really? Oh dear.
I remember only in February we were getting 1.20 euros to the pound, now I've just checked it's 0.85. "Can't do Maths" but I think that's about a third less?
So how is it lots of people are still able to afford the increased price holidays and the additional amount their spending money costs them?

independent.co.uk
Brexit caused UK food prices to rise 6% as cost of living crisis deepens.

Trade friction is a real issue.

The value of sterling slumped on Friday to the lowest for 2 yrs, making imports even more expensive.

One thing is certain. The utterly idiotic decision of the Bank of England to increase interest rates will make inflation worse by pushing up the cost of borrowing.

Inflation has two main causes; ) increased demand for resources which lead to a shortage of supply, or 2) price increases caused by increased costs for suppliers.

The first can be controlled , in theory, by taking money out of the economy and encouraging savings. That' s where the increase in interest rates is supposed to work, do dampen demand. Increasing rates is useless for the second as it just makes everything more expensive. That's a situation where government could be looking at price controls, mitigations, such as energy saving measures, and alternative sources of supply.

Our inflation is a result of the second scenario.

One thing is certain, our government is doing very little to protect the poorer members of society from the effects of inflation, they've even increased their taxes, which makes them even more vulnerable to inflation.

Inflation will rise quickly, it’s probably over 10% now in reality, fuel will add a limited amount there are many other products and services that we are paying more for. At the price fuel is now there are plenty of suppliers willing to ship it to us.

I guess it will depend on which one of the 27 countries we look at.

It took me 2 minutes for find out that inflation in France is running at 4.5% and they are only dependent on Russia for 17% of their gas. So for them the impact could be limited.

If an economics ingenue like me can work that out, you'd hope people who actually know how this works would have a good handle on it.

Anyone else think that inflation will increase rapidly in EU member states if/when they stop importing fuel from Russia as Ms. Van de Leyen has proposed this week (again)?

Oh, yes please Jane. For that but also for the word you see flash past just as you press the "post" button.

DaisyAnne

Jane43

DaisyAnne

Jane43

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Whatever you believe, the truth is that those who are billed but get Council Tax Support will get the £150. That will be those on certain benefits. They are not "exempt". We don't know when and they may have to supply bank details to get it paid directly into their account, otherwise, it may be a cheque.

You must be aware that your post could frighten vulnerable people. It's quite easy to check the facts.

Immediately after my post growstuff pointed out my error and I then thanked her for pointing it out so I don’t see how anybody could have been frightened by my post.

I'm sorry, I missed that.

Those who get full council support are at the poorest or least able to help themselves end of our society. If you cannot realise the anxiety they live in I am sorry for that too. People are living in fear, not just of greater poverty, but of not knowing what they will have to try and deal with.

However, repetition doesn't help so once again I am sorry I missed growstuffs post.

I think it’s an example of how much the forum needs an edit function. If there was one I would have edited my post as soon as growstuff pointed it out.

Do you actually feel that comparing our country with the 93rd richest country in the world adds anything to our knowledge of how the UK is doing? It seems like straw grasping to me.

OK, so some countries have a government that can manage high inflation and some don't. Ours can't, apparently.

Ours isn't even looking at countries with lower inflation than ours and asking what we can do to be more like them?

They're just saying its up to the BoE.

Yes, I forgot that. I heard it too.

On the news this week (not sure what channel) they said that inflation in Turkey is currently 60%

7.9% in the US in February.

Brexit accounts for the gap

Inflation rate in Italy is around 3%. In Germany, around 5%. In Australia about 3.5%.

In the UK? About 7.5%

The excuse of it being a worldwide problem that the government can do nothing about isn't ringing true for some of us.

Jane43

DaisyAnne

Jane43

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Whatever you believe, the truth is that those who are billed but get Council Tax Support will get the £150. That will be those on certain benefits. They are not "exempt". We don't know when and they may have to supply bank details to get it paid directly into their account, otherwise, it may be a cheque.

You must be aware that your post could frighten vulnerable people. It's quite easy to check the facts.

Immediately after my post growstuff pointed out my error and I then thanked her for pointing it out so I don’t see how anybody could have been frightened by my post.

I'm sorry, I missed that.

Those who get full council support are at the poorest or least able to help themselves end of our society. If you cannot realise the anxiety they live in I am sorry for that too. People are living in fear, not just of greater poverty, but of not knowing what they will have to try and deal with.

However, repetition doesn't help so once again I am sorry I missed growstuffs post.

Not sure what you think the UK government can do about it Grantanow. Inflation is a global problem, not confined to the UK. The Bank of England which sets interest rates is independent of the government.

It's hard now and it's going to get worse. In the 1970s inflation hit about 15% and it took monetarism to bring it down. Savings accounts are already Losings accounts. What is Johnson doing about it?

Thank you for pointing out my error Growstuff as I said it was a long time ago I was 21 at the time had little interest in financial matters.

DaisyAnne

Jane43

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Whatever you believe, the truth is that those who are billed but get Council Tax Support will get the £150. That will be those on certain benefits. They are not "exempt". We don't know when and they may have to supply bank details to get it paid directly into their account, otherwise, it may be a cheque.

You must be aware that your post could frighten vulnerable people. It's quite easy to check the facts.

Immediately after my post growstuff pointed out my error and I then thanked her for pointing it out so I don’t see how anybody could have been frightened by my post.

volver

When did it become "state welfare"?

It was "benefits" in my day - not that I was ever entitled to any. "State welfare" is a very US thing, isn't it?

I was just trying to think of an all encompassing term for child benefits, NHS which treated anything that needed treatment, more generous and less punitive unemployment benefits. Free tertiary education with maintenance grants (which didn't just apply to University students, I got a grant for my vocational college training and my sister did for teacher training). I don't recall paying for NHS dental treatment, either.

Banging on about high mortgage interest doesn't negate the other stuff we didn't have to pay for...