Sunak will soon wish we were still talking about Johnson.

MaizieD

^Maizie I didn’t say I necessarily think the BoE is correct, just that it has a preferred method.^

Well, it's time it stopped mindlessly repeating it, looked at what is actually happening.

I cannot understand how supposedly competent economists can so utterly fail to see the difference between demand and supply led inflation. Or appear to not have the faintest notion how to deal with the second type...

I am stunned that the government and their nodding heads are still seeing this as "spending" inflation. There may be level of salary/wage inflation, there may be a level of profit inflation but it seems they haven't bothered to find out. There may be inflation in areas I know nothing about and neither, it seems, do they. But it is much, much more complex than they are making it seem and needs more complex solutions.

Which would you trust more at this moment in time though MaizieD - nail your colours to the mast.

I love your sense of humour, Casdon 😂

I don't think either have a clue, and I don't trust Reeves either.

We're economically doomed, I tell you. Doomed...

The way I feel at the moment, I'm inclined not to vote at all. I think the Tories have sealed their own fate by their witch hunts and puerile behaviour, and don't deserve to continue. But who next?

WWM2:

Whenever I look at the topics on Gransnet, I instinctively know it is you if the post is about the shocking Tory govt. I marvel about where you find the time or the zeal to post so often and stay there for ages. Are you a local politician or a leading member of the local Labour or Lib Dem party. I admire your total zeal in your efforts to help the Labour cause. You certainly have made me curious as it seems if you had a poll on Gransnet to ascertain how many of you are are loyal Labour voters and how many generally vote Conservative, Labour would have a stinking majority I would think. Like many Conservatives, I find the calibre of ALL MPs rather disappointing. Too many move from university to became part of party political groups without working outside politics so have no experience of the real world. Every day I tell myself not to bother to join in the discussion as those of us who do not vote Labour are heavily outnumbered, but then I cannot resist. I must try harder not to bother. Can I admit I am looking forward to another Labour govt who will solve all our problems. Hallelujah! .

anniel I am neither a political party member nor work for a political party.

I am a 77 year old with a keen interest and enjoyment of politics. It is one of my hobbies, and my education also includes politics at degree level.

I have been a passionate opponent of the Tory party since I realised that they were willing to go with a total immoral vacuum, a liar and corrupt party leader. It alarmed me to such an extent that I was willing to support Labour at the last election to try to avoid such a disaster. It was not to be however, and our democracy has suffered dreadfully as a result, and my worst fears have been confirmed.

I will continue to criticise what I see as an incompetent and corrupt government.

You are free to start your own thread to support your party of choice, or criticise its opposition. Although, you no doubt will tell me that you have a life and no time to post😄😄😄

Actually it has just occurred to me - you aren’t really interested are you? It was just a chance to have a dig I suspect. Hey Ho

Ww2 and Anniel I don’t think it’s even a case of Labour v Conservatives - I think it’s the parliamentary model which is not working. If we had proportional representation then there might not be one party dominating in government but rather more all parties joining together to find solutions. Not sure why we still favour the adversarial model.

Yes I’m all for PR

Yes good but when and how does it happen?

"Anniel" The perceived wisdom is that as we get older we become more Conservative and that supporting Labour is something we did in our youth but learned some sense. This theory would suggest that most GNers are Tory supporters.

Those of us who are supporters of left or left of centre parties are in the minority but make more noise.

The news has just come in that inflation for May was no different from April, still 8.7% - and, even worse, underlying inflation has actually risen. Sunak talks a good game but he is achieving precisely nothing. You are quite correct OP, he has got nowhere with any of his five pledges up to now. I am really disappointed in him as our PM, and I am a Conservative voter. Problem is, we are likely stuck with him until after the election as I doubt the party want to have yet another leadership contest before then.

Dinahmo

"Anniel" The perceived wisdom is that as we get older we become more Conservative and that supporting Labour is something we did in our youth but learned some sense. This theory would suggest that most GNers are Tory supporters.

Those of us who are supporters of left or left of centre parties are in the minority but make more noise.

True.
😆

As for inflation, that can be laid firmly at the door of the Bank of England - they should have started tackling it far earlier than they did. Their inaction is what has led to a lot of rate rises in a very short period of time, thus sending mortgage costs skyrocketing. Why on earth Tony Blair made them independent is beyond me! Both the current and previous governors have been useless - no idea why Sunak continues to support them. Although, birds of a feather and all that...

I have a question to all posters who think that the B of E is in the wrong, the Government hasn’t the correct policy to bring down inflation.

What do you think should be done?

Anniel: In these types of posts it appears that GNetters are mostly Labour voters but actually it is the same few folk that comment - Conservative supporters mostly keep their heads down due to the hostile atmosphere. I gave my opinion early on when a newby to GN and was roundly set upon so I rarely comment these days. I always read the posts though. Pops head down under parapet again!

From what I've read, even if Labour is quite a long way ahead in popular support, the election system system is such that they would have to win far more than 50% of the vote to get enough seats to form a government. This is partly due to our antiquated and undemocratic First Past the Post elecroral system.

The maths, courtesy of Chris Giles, Economics Editor at the Financial Times:

To meet Sunak’s "halve inflation" pledge, prices must not be more than 5.4% higher in Q4 this year than in 2022.

Six months of data in, they have already risen 3.6%

It's looking decidedly tricky now. It would need monthly increases of 0.3% or lower
(May was 0.7%)

GrannyGravy13

I have a question to all posters who think that the B of E is in the wrong, the Government hasn’t the correct policy to bring down inflation.

What do you think should be done?

Tbh I think the inflation in the U.K. at present, is almost certainly caused by two main factors - the rise in cost of production, I.E. raw materials, energy etc. and the importation of goods which have risen in price because of the value of Sterling and of course Brexit costs.

The cost of energy is going down but there is also the annual increase in the minimum wage which impact production and retail costs. Increased financing costs through interest rate hikes will also affect businesses. I don’t see what any government can do.

I was listening o an economist on the radio earlier (didn’t catch her name) and she repeatedly said that farm gate prices were decreasing (dairy, grain etc) which is bringing down the cost of animal feed, baked goods, milk etc but this is not being reflected in the end user price (us)

Petrol/diesel is down and like GSM has posted the spot price for gas has also decreased.

A good percentage of the U.K. saved money during the various lockdowns and have been spending it, which also pushes up need and prices.

Windfall taxes on banks and energy companies asap

ronib

Windfall taxes on banks and energy companies asap

I would like to see the banks raise the amount of interest they pay on savings accounts.

They are particularly speedy when it comes to raising overdraft costs, loan interests and mortgage rates but extremely tardy on raising interest on savings.

As for windfall tax on energy companies, only profits made in the U.K. should be liable for this, when I last had a look at an energy company’s profit/loss account a large majority of its profits were made outside of the U.K.

Whitewavemark2

anniel I am neither a political party member nor work for a political party.

I am a 77 year old with a keen interest and enjoyment of politics. It is one of my hobbies, and my education also includes politics at degree level.

I have been a passionate opponent of the Tory party since I realised that they were willing to go with a total immoral vacuum, a liar and corrupt party leader. It alarmed me to such an extent that I was willing to support Labour at the last election to try to avoid such a disaster. It was not to be however, and our democracy has suffered dreadfully as a result, and my worst fears have been confirmed.

I will continue to criticise what I see as an incompetent and corrupt government.

You are free to start your own thread to support your party of choice, or criticise its opposition. Although, you no doubt will tell me that you have a life and no time to post😄😄😄

I kind of thought the same as Annie1 tbh as you do start loads of threads, I guessed you were an older person tho with plenty of time as retired.
Don’t know about Annie1 but I don’t have much time at all, still working in my 50’s and with added childcare duties😬
I don’t see it as a dig at you btw.
I imagine all sorts of political opinions are welcome on the political threads or should be.

GrannyGravy13

I was listening o an economist on the radio earlier (didn’t catch her name) and she repeatedly said that farm gate prices were decreasing (dairy, grain etc) which is bringing down the cost of animal feed, baked goods, milk etc but this is not being reflected in the end user price (us)

Petrol/diesel is down and like GSM has posted the spot price for gas has also decreased.

A good percentage of the U.K. saved money during the various lockdowns and have been spending it, which also pushes up need and prices.

Yeah those things should be making a difference right now, I’ve noticed anyway so others should as well.

Here is a delightful plain English Twitter thread explaining supply side inflation, the BoE time lag, and why we thus face galloping interest rate rises to no real effect, using the medium of cucumbers.

twitter.com/edconwaysky/status/1671514873220550659?s=46&t=cR0Pa_B5bkzj2u6O2LXngQ