|Guess the UC cut will get reversed pretty soon. on 22:17 - Oct 7 with 274 views||HARRY10|
With the economy in the precarious position it currently now is in, it is probably not the best time to be taking £6bn out. That reduction will be compounded by money also taken out to pay higher energy bills - both house & car.
The rising cost of gas will certainly push up the price of goods, feeding inflation and further taking money out of the economy ie higher costs mean a lesser amount of goods and services for the same cost.
The word from the BoE was that the rise in inflation would be temporary. Something they have suggested today may be a bit longer and a bit higher than first thought. Global energy and commodity prices are outside UK control.
I suspect fat boy was told that it will all be over by next spring, so we will just have to tough it out until then. I would suggest he takes a look at what happened when the oil crisis hit in 73/74, quadrupling the cost of oil.
With western economies running on tighter margins and 'just in time' production, there is not the slack as then to absorb price rises.
Living within your means may soon not be a sensible option, but a desired hope.
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