Inflation falls again

tommytwojags said:
... and is almost certain to be below the Bank of England’s official target of 2% in April.

Well it can't be anything to do with government policies because that's only when the rate goes up.


https://www.bbc.co.uk/news/live/business-68581526?src_origin=BBCS_BBC
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The seismic shock of the Truss-Kwarteng budget sent inflation rocketing. Coupled with food supply difficulties following Brexit and the ongoing Russia-Ukraine war, inflation and interest rates rose to a point where demand dropped off to a level that supply could cope with, thereby causing inflation to fall. Note: inflation has reduced, not disappeared, so prices continue to rise.
 
1966_and_all_that said:
The seismic shock of the Truss-Kwarteng budget sent inflation rocketing. Coupled with food supply difficulties following Brexit and the ongoing Russia-Ukraine war, inflation and interest rates rose to a point where demand dropped off to a level that supply could cope with, thereby causing inflation to fall. Note: inflation has reduced, not disappeared, so prices continue to rise.
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Are you purposefully missing off covid, probably one of the biggest factors?
 
JJpool said:
Are you purposefully missing off covid, probably one of the biggest factors?
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No. It is the case that post-COVID demand cause higher inflation in many parts of the world. In the USA, where the US Federal government offered a stimulus package of $1.9 trillion in the form of cheques and tax cuts, demand contributed significantly to inflation. However, the same could not be said of the UK, where there was no equivalent fiscal stimulus. Indeed, the UK economy, during the first two years of the post COVID period, was characterised by stagnant / negative growth. Yes, I should have mentioned COVID but only as an additional cause of cost-push inflation.
 
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ElBurroSinNombre said:
Does this mean that it was the government's fault when inflation rose to 11%?
It seems that they want to take credit when it falls but don't want to take responsibility when it rises.
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Yep. Prices sparked sharply and haven't gone down. Just continuing to go up more slowly.

The interesting thing about these figures is that the falling rates of food inflation have come to the rescue. But inflation is the services sector is still over 6% - a bit of a worry in a service-based economy such as ours.
 
tommytwojags said:
... and is almost certain to be below the Bank of England’s official target of 2% in April.

Well it can't be anything to do with government policies because that's only when the rate goes up.


https://www.bbc.co.uk/news/live/business-68581526?src_origin=BBCS_BBC
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I think you'll find that the Chancellor and PM were adamant that the rise in inflation was completely out of their hands.

Of course they then take the credit for it dropping.

Prices are still rising of course.
 
basilrobbie3 said:
Yep. Prices sparked sharply and haven't gone down. Just continuing to go up more slowly.

The interesting thing about these figures is that the falling rates of food inflation have come to the rescue. But inflation is the services sector is still over 6% - a bit of a worry in a service-based economy such as ours.
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Quite. The Thatcher policy of decimating industry and building up the service sector (Finance, principally), served two purposes: to benefit the Conservative Party's wealthy donors and to destroy the power of the trades unions. At the same time Germany chose to consolidate and grow its industrial sector which, given the key role of trades Union-based, works councils, resulted in significant growth for the German economy. Ironical then that it was Britain that was allocated the task of redeveloping German industrial relations policies and structures once industry was allowed to start growing again in1948.
 
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tommytwojags said:
That's strange. When I said global inflation was nothing to do with Rishi and his government, the racket from the LWNJs on here was deafening.
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Why is it strange?

You either can, or can't control inflation. He's reversed 180° now it's coming down after previously claiming it wasn't something he could do anything about.
 
Wizaard said:
Why is it strange?

You either can, or can't control inflation. He's reversed 180° now it's coming down after previously claiming it wasn't something he could do anything about.
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We experienced an inflationary energy price spike at the beginning of the Ukraine incursion which has now more or less worked its way through the system. Things in the UK were exacerbated by the Truss government. To be fair to him, Sunak has steadied the economy after those days of chaos but he cannot really take all of the credit for inflation falling, just as the causes of the rise in inflation were generally out of his hands. His problem to me, is not that he is an incompetent PM, it's just that he is crap at politics. On issues of leadership and moral authority, he almost always makes the wrong calls.

Anyway this is a good thing for almost everybody and we should be generally pleased. Interest rates easing towards the end of the year would help a lot of people who are struggling right now. It should also allow business to borrow more freely helping with economic growth. A new government could / should strike a better deal with the EU to kick start some more growth.

It will be much harder for Sunak to claim progress on 'stopping the boats' another of his priorities.
 
1966_and_all_that said:
No. It is the case that post-COVID demand cause higher inflation in many parts of the world. In the USA, where the US Federal government offered a stimulus package of $1.9 trillion in the form of cheques and tax cuts, demand contributed significantly to inflation. However, the same could not be said of the UK, where there was no equivalent fiscal stimulus. Indeed, the UK economy, during the first two years of the post COVID period, was characterised by stagnant / negative growth. Yes, I should have mentioned COVID but only as an additional cause of cost-push inflation.
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The shutting down of the worlds economy and the printing of money had a big impact.
 
basilrobbie3 said:
Yep. Prices sparked sharply and haven't gone down. Just continuing to go up more slowly.

The interesting thing about these figures is that the falling rates of food inflation have come to the rescue. But inflation is the services sector is still over 6% - a bit of a worry in a service-based economy such as ours.
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Some things have gone down and as pointed out some weeks back certain building materials had seen some prices falling slightly.
 
Theoneandonly said:
Oh my goodness stop bleating about Brexit. It’s a big world and a global economy. Better to have choices than be part of a collective failure. Unless the EU reinvents itself it will fail because of the north/south divide.
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There is something in your last comment. The Common Market/EEC/EU was always a Franco-German conceit and the Euro was always going to be too strong a currency for the Meditteranean countries. Even so, I continue to believe that Europe works better when we're all involved. We need unity in Europe, not nationalistic isolationism.
 
High interest rates have helped bring inflation down and as the Government keep.telling.us interest rates are set by the Bank of England who are independent from the Government. But only when inflation is high ?. Rishi is now taking the plaudits
 
1966_and_all_that said:
The seismic shock of the Truss-Kwarteng budget sent inflation rocketing. Coupled with food supply difficulties following Brexit and the ongoing Russia-Ukraine war, inflation and interest rates rose to a point where demand dropped off to a level that supply could cope with, thereby causing inflation to fall. Note: inflation has reduced, not disappeared, so prices continue to rise.
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Seriously stop the bullshit with the Truss budget - we lost hundreds of billions with the pandemic and the markets didn’t give a monkeys.
 
no9 said:
Seriously stop the bullshit with the Truss budget - we lost hundreds of billions with the pandemic and the markets didn’t give a monkeys.
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I had a house sale fall through as the buyers lost their mortgage offer thanks to those twats.
 
Mexboroseasider said:
You do realise he’ll then try to stuff the U.K. on any trade deal don’t you? Taking over and then making us pay even more for the NHS.

Although admittedly the British Brown Noses (led by Fawning Nigel) will be generously rewarded for betraying their country.
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Well we might soon find out.
 
Theoneandonly said:
Oh my goodness stop bleating about Brexit. It’s a big world and a global economy. Better to have choices than be part of a collective failure. Unless the EU reinvents itself it will fail because of the north/south divide.
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Tell me one single benefit that Brexit has brought that wasn't available as part of the EU and I'll stop 'bleating'.

You own the omnishambles and I'll stop 'bleating'.
 
I don’t wanna be a yank but I want them to be a great country.

I want Great Britain to be great.

I don’t think there is anything wrong with that.
 
no9 said:
I don’t wanna be a yank but I want them to be a great country.

I want Great Britain to be great.

I don’t think there is anything wrong with that.
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It depends how you perceive greatness. A majority of Germans once thought the 3rd Reich was great.
 
Theoneandonly said:
Oh my goodness stop bleating about Brexit. It’s a big world and a global economy. Better to have choices than be part of a collective failure. Unless the EU reinvents itself it will fail because of the north/south divide.
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Not based on reality but you're entitled to your point of view.
 
Theoneandonly said:
Oh my goodness stop bleating about Brexit. It’s a big world and a global economy. Better to have choices than be part of a collective failure. Unless the EU reinvents itself it will fail because of the north/south divide.
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Nah. Brexit was shit and fucked us. We can’t just bury our heads in the sand and pretend it was a huge success.
 
no9 said:
Starmer v Trump, that’s funny😂
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It would be like this with him holding him up.

"The British PM everybody"

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Followed by Starmer saying I get on well with Donald...but he's wrong on some things...


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  • Haha
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