Inflation is 10% 07:51 - Aug 17 with 1923 views | chicoazul | Sadly kids, Xmas is cancelled this year, but Granny has darned you an amazing new blanket so you can keep warm! | |
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Inflation is 10% on 07:55 - Aug 17 with 1496 views | Pippin1970 | Joking aside. Can see loads of small businesses going under plus cafes/restaurants etc. People will stay in more. Even supermarket shopping is expensive lol. | | | |
Inflation is 10% on 07:59 - Aug 17 with 1472 views | chicoazul |
Inflation is 10% on 07:55 - Aug 17 by Pippin1970 | Joking aside. Can see loads of small businesses going under plus cafes/restaurants etc. People will stay in more. Even supermarket shopping is expensive lol. |
I’m…..not sure. It’s purely apocryphal but I remember a recent thread on here when basically, nobody said they had given anything up or changed very much about their lifestyles at all. I think there is a lot of headroom in the economy yet. And fuel, which is a major cost bucket for many, is coming down. And don’t forget many people still work from home. | |
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Inflation is 10% on 08:16 - Aug 17 with 1410 views | DanTheMan |
Inflation is 10% on 07:59 - Aug 17 by chicoazul | I’m…..not sure. It’s purely apocryphal but I remember a recent thread on here when basically, nobody said they had given anything up or changed very much about their lifestyles at all. I think there is a lot of headroom in the economy yet. And fuel, which is a major cost bucket for many, is coming down. And don’t forget many people still work from home. |
Anecdotally, I do know of a few people who have had to cut back. My brothers family in particular has had to really tighten their already very tight belts. Personally we've changed shopping habits a little but I have a well paid job so I can absorb most of the cost, and my partner has just started a new one as well which helps. I dread to think what our wedding is going to cost now with the food. We had budgeted everything for a 2021 wedding (which didn't happen for obvious reasons). With inflation and everything else I imagine the per head cost has gone up. We've tried to save more of course but the amount extra we could save wasn't as much as we would have liked. | |
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Inflation is 10% on 08:30 - Aug 17 with 1348 views | Steve_M |
Inflation is 10% on 07:59 - Aug 17 by chicoazul | I’m…..not sure. It’s purely apocryphal but I remember a recent thread on here when basically, nobody said they had given anything up or changed very much about their lifestyles at all. I think there is a lot of headroom in the economy yet. And fuel, which is a major cost bucket for many, is coming down. And don’t forget many people still work from home. |
It's probably very difficult to model the impacts as consumer, and business, behaviour is so different to to the 90s let alone earlier periods of inflation. Given fuel costs are a large part of the reason inflation is so high, then there's a natural incentive to reduce usage where possible. Big ticket purchases - electronics, new cars etc - probably get put off but smaller discretionary spending is less clear - people eat out more readily than in previous generations, that maybe gets cut back - less often, cheaper places - than stopped all together. Edit: I meant to add another lien about UK business not being so energy intensive as in the 70s so, although costs have clearly increased, they are unlikely to lead to wholesale shut downs and three day weeks. [Post edited 17 Aug 2022 9:14]
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Inflation is 10% on 09:08 - Aug 17 with 1273 views | SuperKieranMcKenna | Expect more interest rate rises which will do nothing in terms of the underlying causes of inflation (commodity prices, China lockdowns, increased transportation costs), but will further squeeze incomes. This is going to take global cooperation to tackle, but fear not Liz Truss will soon be at the helm… | | | |
Inflation is 10% on 09:10 - Aug 17 with 1257 views | Kieran_Knows |
Inflation is 10% on 08:16 - Aug 17 by DanTheMan | Anecdotally, I do know of a few people who have had to cut back. My brothers family in particular has had to really tighten their already very tight belts. Personally we've changed shopping habits a little but I have a well paid job so I can absorb most of the cost, and my partner has just started a new one as well which helps. I dread to think what our wedding is going to cost now with the food. We had budgeted everything for a 2021 wedding (which didn't happen for obvious reasons). With inflation and everything else I imagine the per head cost has gone up. We've tried to save more of course but the amount extra we could save wasn't as much as we would have liked. |
'With inflation and everything else I imagine the per head cost has gone up' With our wedding next weekend and numbers now confirmed, I'm waiting for our final bill to come through ... not looking forward to it either! | |
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Inflation is 10% on 09:13 - Aug 17 with 1233 views | DanTheMan |
Inflation is 10% on 09:08 - Aug 17 by SuperKieranMcKenna | Expect more interest rate rises which will do nothing in terms of the underlying causes of inflation (commodity prices, China lockdowns, increased transportation costs), but will further squeeze incomes. This is going to take global cooperation to tackle, but fear not Liz Truss will soon be at the helm… |
I must say I don't understand how raising interest rates helps when the prices are going up for necessities. You can't just not buy electricity. Also I'm in no way qualified to know so I assumed I was missing something. | |
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Inflation is 10% on 09:30 - Aug 17 with 1191 views | chicoazul |
Inflation is 10% on 09:13 - Aug 17 by DanTheMan | I must say I don't understand how raising interest rates helps when the prices are going up for necessities. You can't just not buy electricity. Also I'm in no way qualified to know so I assumed I was missing something. |
Basically raising interest rates makes money (debt) more expensive and also has a psychological effect on the populace, cooling spending, which in turn cools inflation. That’s the theory. | |
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Inflation is 10% on 09:37 - Aug 17 with 1166 views | Guthrum |
Inflation is 10% on 09:30 - Aug 17 by chicoazul | Basically raising interest rates makes money (debt) more expensive and also has a psychological effect on the populace, cooling spending, which in turn cools inflation. That’s the theory. |
Which is fine when inflation is driven by excessive credit card spending. However, it does nothing to bring down commodity prices when they're rising for other reasons (e.g. global shortages, transport issues, war, etc.). All it does is increase the cost for those who have to borrow to make ends meet, or have non-fixed mortgages, thus the danger of defaults down the line. | |
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Inflation is 10% on 09:44 - Aug 17 with 1153 views | ElderGrizzly |
Inflation is 10% on 09:30 - Aug 17 by chicoazul | Basically raising interest rates makes money (debt) more expensive and also has a psychological effect on the populace, cooling spending, which in turn cools inflation. That’s the theory. |
Yet, most of the spending is not being fuelled by traditional increases in borrowing etc which is where interest rates are a lever. This is mostly about cost of energy that then ripples throughout the supply chain The Bank of England admitted raising interest rates wouldn’t bring down inflation in the traditional sense, it will just cause a recession which would have the same effect. Labour’s plan for freezing the energy cap takes off 4% on the inflation rate almost immediately. If the energy cap goes up, we are looking at inflation of 15%+ next year | | | |
Inflation is 10% on 09:47 - Aug 17 with 1139 views | DanTheMan |
Inflation is 10% on 09:37 - Aug 17 by Guthrum | Which is fine when inflation is driven by excessive credit card spending. However, it does nothing to bring down commodity prices when they're rising for other reasons (e.g. global shortages, transport issues, war, etc.). All it does is increase the cost for those who have to borrow to make ends meet, or have non-fixed mortgages, thus the danger of defaults down the line. |
This is where I was not understanding. I understood the general case as chico outlined but couldn't get how it would work. https://www.newstatesman.com/business/2022/08/when-will-interest-rates-bring-dow I did find this article which explains it might be using interest rate rises to try and stop people getting pay rises which... well I can't say I agree with. The last few lines are sobering. But it’s also worth remembering that a drop in the inflation figure doesn’t mean prices are falling — just that they have stopped increasing. Cornwall Insight has warned that energy bills could stay above £3,000 a year until at least 2024, which will keep up the pressure on people’s finances. “Inflation coming back to the [Bank of England’s] 2 per cent target isn’t going to make people feel better,” says Weale. “It will just stop them feeling they’re getting worse and worse off.” [Post edited 17 Aug 2022 9:47]
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Inflation is 10% on 09:49 - Aug 17 with 1119 views | BanksterDebtSlave | It's definitely nothing to do with QE......no, no, no! | |
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Inflation is 10% on 09:55 - Aug 17 with 1104 views | J2BLUE | Once higher energy bills kick in there will certainly be lots of people cutting spending. We will likely see it it in crowds at PR. I suspect spending in supermarkets and things like Netflix subscriptions will go up while restaurants, bars, cinema etc get hammered. | |
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Inflation is 10% on 09:57 - Aug 17 with 1093 views | chicoazul |
Inflation is 10% on 09:37 - Aug 17 by Guthrum | Which is fine when inflation is driven by excessive credit card spending. However, it does nothing to bring down commodity prices when they're rising for other reasons (e.g. global shortages, transport issues, war, etc.). All it does is increase the cost for those who have to borrow to make ends meet, or have non-fixed mortgages, thus the danger of defaults down the line. |
Well, yes. | |
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Inflation is 10% on 09:59 - Aug 17 with 1083 views | ElderGrizzly |
Inflation is 10% on 09:55 - Aug 17 by J2BLUE | Once higher energy bills kick in there will certainly be lots of people cutting spending. We will likely see it it in crowds at PR. I suspect spending in supermarkets and things like Netflix subscriptions will go up while restaurants, bars, cinema etc get hammered. |
Netflix and Amazon are still losing subscribers. Amazon lost 590,000 in the last 3 months apparently. Problem is reducing spending won't bring down this inflationary pressure. It will just bring about the demise of more businesses as less spending will be taking place. Globally, we are probably going to see the biggest recession since the 1990s and we haven't even got started yet :( | | | |
Inflation is 10% on 09:59 - Aug 17 with 1082 views | SuperKieranMcKenna |
Inflation is 10% on 09:47 - Aug 17 by DanTheMan | This is where I was not understanding. I understood the general case as chico outlined but couldn't get how it would work. https://www.newstatesman.com/business/2022/08/when-will-interest-rates-bring-dow I did find this article which explains it might be using interest rate rises to try and stop people getting pay rises which... well I can't say I agree with. The last few lines are sobering. But it’s also worth remembering that a drop in the inflation figure doesn’t mean prices are falling — just that they have stopped increasing. Cornwall Insight has warned that energy bills could stay above £3,000 a year until at least 2024, which will keep up the pressure on people’s finances. “Inflation coming back to the [Bank of England’s] 2 per cent target isn’t going to make people feel better,” says Weale. “It will just stop them feeling they’re getting worse and worse off.” [Post edited 17 Aug 2022 9:47]
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For reference, WEF inflation rates by country. Pretty grim reading: https://www.weforum.org/agenda/2022/06/inflation-stats-usa-and-world/ Turkey’s problems started a few years back when Erdogan put his son-in-law in charge of the Ministry of Finance… | | | |
Inflation is 10% on 10:01 - Aug 17 with 1072 views | chicoazul |
Inflation is 10% on 09:47 - Aug 17 by DanTheMan | This is where I was not understanding. I understood the general case as chico outlined but couldn't get how it would work. https://www.newstatesman.com/business/2022/08/when-will-interest-rates-bring-dow I did find this article which explains it might be using interest rate rises to try and stop people getting pay rises which... well I can't say I agree with. The last few lines are sobering. But it’s also worth remembering that a drop in the inflation figure doesn’t mean prices are falling — just that they have stopped increasing. Cornwall Insight has warned that energy bills could stay above £3,000 a year until at least 2024, which will keep up the pressure on people’s finances. “Inflation coming back to the [Bank of England’s] 2 per cent target isn’t going to make people feel better,” says Weale. “It will just stop them feeling they’re getting worse and worse off.” [Post edited 17 Aug 2022 9:47]
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There is nothing the Govt or BoE can do, short of parachuting money into the economy which will further fuel inflation. I suppose they could bring in some form of price controls in goods and services but history has shown us how that tends to work out. We have been living in the Weimar Republic for many years, certainly since the financial crash. And now the bill is due. | |
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Inflation is 10% on 10:04 - Aug 17 with 1059 views | chicoazul |
Inflation is 10% on 09:49 - Aug 17 by BanksterDebtSlave | It's definitely nothing to do with QE......no, no, no! |
Indeed! | |
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Inflation is 10% on 10:07 - Aug 17 with 1042 views | DanTheMan |
Inflation is 10% on 10:01 - Aug 17 by chicoazul | There is nothing the Govt or BoE can do, short of parachuting money into the economy which will further fuel inflation. I suppose they could bring in some form of price controls in goods and services but history has shown us how that tends to work out. We have been living in the Weimar Republic for many years, certainly since the financial crash. And now the bill is due. |
I imagine there are some ways they could limit it but I am aware they weren't going to be able to shield everyone from it. Gonna be a fun couple of years, I dread to think what sort of unrest is going to be caused. People are rightly going to be pissed. | |
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Inflation is 10% on 10:10 - Aug 17 with 1032 views | J2BLUE |
Inflation is 10% on 09:59 - Aug 17 by ElderGrizzly | Netflix and Amazon are still losing subscribers. Amazon lost 590,000 in the last 3 months apparently. Problem is reducing spending won't bring down this inflationary pressure. It will just bring about the demise of more businesses as less spending will be taking place. Globally, we are probably going to see the biggest recession since the 1990s and we haven't even got started yet :( |
I'm sure that will be reversed when people are looking for cheap entertainment when things are bleak. Especially with Amazon's new LOTR prequel | |
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Inflation is 10% on 10:18 - Aug 17 with 1015 views | chicoazul |
Inflation is 10% on 10:07 - Aug 17 by DanTheMan | I imagine there are some ways they could limit it but I am aware they weren't going to be able to shield everyone from it. Gonna be a fun couple of years, I dread to think what sort of unrest is going to be caused. People are rightly going to be pissed. |
If I were you my brother I would speak to your family and the good lady and see if the wedding can be parked for now (congratulations btw). Better off putting that 20k somewhere else! | |
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Inflation is 10% on 10:27 - Aug 17 with 996 views | Lord_Lucan |
Inflation is 10% on 08:16 - Aug 17 by DanTheMan | Anecdotally, I do know of a few people who have had to cut back. My brothers family in particular has had to really tighten their already very tight belts. Personally we've changed shopping habits a little but I have a well paid job so I can absorb most of the cost, and my partner has just started a new one as well which helps. I dread to think what our wedding is going to cost now with the food. We had budgeted everything for a 2021 wedding (which didn't happen for obvious reasons). With inflation and everything else I imagine the per head cost has gone up. We've tried to save more of course but the amount extra we could save wasn't as much as we would have liked. |
Unless your future wife has got her mind set on a big do I would advise to cancel it, get married in a registry office and go down the pub. Whatever you were going to spend on a wedding, spend it on yourself instead. | |
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Inflation is 10% on 10:49 - Aug 17 with 936 views | DanTheMan |
Inflation is 10% on 10:27 - Aug 17 by Lord_Lucan | Unless your future wife has got her mind set on a big do I would advise to cancel it, get married in a registry office and go down the pub. Whatever you were going to spend on a wedding, spend it on yourself instead. |
I feel the ship has sailed on that front! Same goes to Chcio, the wedding is in November, everything is booked, many deposits paid for. We're almost entirely saved up at this point. We're both in decent careers (now) so think we're going to be fine. [Post edited 17 Aug 2022 10:51]
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Inflation is 10% on 14:47 - Aug 17 with 805 views | Skip_Intro | "Sadly kids, Xmas is cancelled this year, but Granny has darned you an amazing new blanket so you can keep warm! " just before she sadly died of hypothermia due to not being able to pay her leccy bill... [Post edited 17 Aug 2022 15:04]
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