High Inflation.

Yes Chocolatelovinggran. He must have been so pleased with himself after his light bulb moment. Telling us what we already knew.

One way or another benefits will have to go up as well.

How do you think that is going to happen, Katie59?

This is the government that took away the £20 'uplift to UC. That voted not to feed poor children in the holidays during lock down, that took away the pension triple lock and is now imposing unnecessary taxation on us in the name of 'repaying' money that we don't actually owe.

Can you really see them increasing benefits?

Kate1949

Our children and grandchildren like to go to pricey restaurants regularly, not just for special occasions. It's what they like to do. They work hard and can afford it so why not.
We don't eat out often but if we do, its usually cheap and cheerful. The last one was Wetherspoons. A toasted panini for me, small all day breakfast for DH, two large glasses if wine £13 ish the lot. It was lovely. Each to their own.

Yes it’s your money spend it on what you want, but I have a feeling it’s going to get worse as wage demands try to catch up with inflation.
One way or another benefits will have to go up as well.

MaizieD

^Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).^

Jack Munro drew attention to this several weeks ago, didn't she? That although the over all rate of inflation was, as I recall, about 6% a lot of the cheap staples that very poor people depend on had gone up by as much as 15%.

I believe that by Jack bringing this to the attention of supermarkets Asda, Aldi &
Lidl have reduced the prices of their basic ranges, let’s hope the other big stores follow.

Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).

Jack Munro drew attention to this several weeks ago, didn't she? That although the over all rate of inflation was, as I recall, about 6% a lot of the cheap staples that very poor people depend on had gone up by as much as 15%.

This government doesn't seem to understand what poverty really means
Nor do they seem to care

We have a different sort of economy now. What is known as a "service" economy rather than a manufacturing economy. Very many people's jobs are in the service sector, which relies on people having enough spare money to buy sandwiches, coffees, meals out etc.
If the people that normally keep these businesses going are unable to afford it any longer, then we will have mass unemployment.
What some of us see as non essential extras, are what is keeping our economy afloat.

Chewbacca

I tend to only do a "cupboard staples" shop once a month and was astonished yesterday to see that prices have rocketed so much since last month. I've no idea how families with growing children are coping, especially if they're on fixed incomes with no leeway to earn more.

Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).

Kate49, 10.02: don't you love it when people with a starting salary of £80, 000+( plus expenses) give advice to the rest of us on how to economise?!

MaizieD

Sensible post, FannyCornforth

We're in for a recession and so far the government have made the pain worse by cutting the incomes of those who will have to give up the most. The Bank of England is about to make it worse by raising interest rates because they think that is the way to halt inflation. That would only work if the inflation is caused by too much money chasing too few resources, then raising interest rates would (in theory) dampen demand.

But that's not the cause of this inflation, is it? It's soaring energy prices, problems with the supply chain (anyone noted the huge lorry queues at Dover?) and war in Ukraine.

And, as has really been noted already on this thread, it is the poor, and the people who are just about managing to live a fairly comfortable life style who are going to be hardest hit. The moderately well off (i.e, those with a substantial cash buffer) and above are going to be able to absorb increased costs.

You've said exactly what I have been thinking - that this particular bout of inflation is caused by external factors, so raising interest rates will not curb it, but will almost certainly speed up/worsen the impending recession.

I fear that we ain't seen nothing yet!

I tend to only do a "cupboard staples" shop once a month and was astonished yesterday to see that prices have rocketed so much since last month. I've no idea how families with growing children are coping, especially if they're on fixed incomes with no leeway to earn more.

Our children and grandchildren like to go to pricey restaurants regularly, not just for special occasions. It's what they like to do. They work hard and can afford it so why not.
We don't eat out often but if we do, its usually cheap and cheerful. The last one was Wetherspoons. A toasted panini for me, small all day breakfast for DH, two large glasses if wine £13 ish the lot. It was lovely. Each to their own.

Think inflation is bad here in the UK? Try living in Turkey, where it's currently running at more than 54% - oh, and wages are far lower than here too.

£5 of the £25 steak will be VAT.

Sensible post, FannyCornforth

We're in for a recession and so far the government have made the pain worse by cutting the incomes of those who will have to give up the most. The Bank of England is about to make it worse by raising interest rates because they think that is the way to halt inflation. That would only work if the inflation is caused by too much money chasing too few resources, then raising interest rates would (in theory) dampen demand.

But that's not the cause of this inflation, is it? It's soaring energy prices, problems with the supply chain (anyone noted the huge lorry queues at Dover?) and war in Ukraine.

And, as has really been noted already on this thread, it is the poor, and the people who are just about managing to live a fairly comfortable life style who are going to be hardest hit. The moderately well off (i.e, those with a substantial cash buffer) and above are going to be able to absorb increased costs.

Why shouldn’t people aspire to live on more than mince and live in warm homes? I’m all for cutting out waste and buying less, but no wish to return to 1950s.

Don’t forget the profit. That’s why they are in business, everything else is an inconvenient expense.

I will never understand why a steak is £25 in a pub where even in Waitrose a nice sirloin steak is £5

It's partly because the pub knows that people will pay the price they're asking, but it's primarily because the cost of that steak has to price in the maintenance/running costs of the establishment you're eating it in, the wages of the people who cook it and serve it to you, the price they've had to pay for it (supermarkets buy in bulk for big discounts. Individual establishments can't) and the price of the fuel used to cook it. If their costs are rising they have to raise their prices to cover it.

In my OP, I didn’t say the couple complained, I just stated what they said they were having, or choosing, to cut down on.

Another couple may have said the heating, or petrol, or certain foods.

I never go out to brunch, for example, so wouldn’t think of cutting that out.

We are very lucky in that we have good pensions and do more or less what we like but we aren't extravagant. However we are making some economies. We have been more careful about energy bills and have found that by switching off things and not leaving them on standby the electricity component of our fuel bill was £27 less last month. We do like a meal out but our favourite pub has put the price of meals up terrifically- nothing under £17 dessert £8. I will never understand why a steak is £25 in a pub where even in Waitrose a nice sirloin steak is £5 so its a meal out once every couple of weeks now- DH says once a month but he doesn't do the cooking!
As for coffees while we are out they just aren't very good or worth the money unless you find a nice authentic cafe- Costa and Starbucks coffee are vile. Small independents seem to be cheaper and better quality.
I don't begrudge my children and grandchildren their treats they work hard and pay their own way.

The couple didn't moan - they just replied to the question as to what they were cutting back on.

We'll be OK. A Government Minister has come up with the bright idea that we should stop buying branded items and change to own brands. Like we hadn't thought of that before. ?

I haven’t seen the interview, so can’t comment on the specifics. But, if they were asked, ‘what will you need to cut back on’, or ‘how is the rise in prices affecting you’, I can imagine people listing the ways, and not expanding that they recognise others are far worse off, even if they feel that. Or the interview could’ve been edited due to time constraints. Or, of course, you’re right, they may be empathy-free creeps.

And you may not be resentful, but several posters on this thread seem to be, tbh.

I don’t think it’s resentment at all. I certainly don’t resent others’ lifestyles and I am comfortably off, but if they were to moan about giving up some treats I would be inclined to try to give them a little perspective.

Grrr. 12 hours a day. Point stands.