Topic: UK inflation hits new high of 9.1% as food and energy price surge persists - page 2. (Read 623 times)

It seems that Russian cut off from the gas and other exports are affecting the European countries slowly. I mean with the time every country slowly publishing that they are suffering from inflation. Most of the increased cost is from vegetables and energy resources ultimately affecting the whole nations foreplay. There is no news from Asian countries where Russia has built up good relationship with and continue to import and export like regular days. I think the only factor that’s affecting is current on going war.

Some signal that inflation is starting to cool down, someone in Europe can tell me, is this the truth?.
Inflation is falling globally and developing countries are the most visible.


https://www.ft.com/content/7c049cbc-efbe-4b1c-9568-bdf41a6deb9c?fbclid=IwAR2NmlC6iEzRSTBW7yBv5FtnKQyklx--rYPUnjvijxGBaXy_pQJ2JPLzKn0



Personally, I think that as long as the war between Russia and Ukraine continues, inflation will not be premature and end.
Inflation only decreased when the war ended and supply was restored.
https://www.telegraph.co.uk/business/2022/06/29/ftse-100-markets-live-news-inflation-prices-russia-gas/?fbclid=IwAR0K688YhOMDOUVTg5xjtkU0tKWj3jWsUDdwh9JCNS1F6C_xMswnl5PO4Vw

The root cause for increasing levels of inflation around the world is obvious to us all. It is the rising crude oil prices. Rather than addressing this issue, western governments are trying to divert the discussion by talking about the war in Ukraine. OPEC nations are making billions of USD every day from the high prices of oil and gas, while the fuel consuming nations are getting wrecked financially. And the western governments are OK with it. They want the OPEC cartel to get rich, at the expense of their own citizens. Till now, the American government hasn't asked the shale oil producers to increase their output. Rather than that, they are trying to further push up the prices, by imposing sanctions on Russia and seizing tankers from Iran.

They strongly believe on their own economy, they made a decision years ago and I think the current situation is just the effect of world crisis, its just that GB are being affected by such crisis. Well, many countries are already suffering big time and yes GB is one of the worst countries with high inflation, if they can’t handle this economically then we might really see the worst situation in GB. People there should start thinking for the alternatives, they have to be more resourceful.

You are right, the most interesting is ahead of everyone. This applies not only to Great Britain, but to the whole world. If inflation is raging in such an economically strong country as GB, then what will happen in others? I don't think GB will be ruined and don't worry about them. They will think of something to get out of this situation. It will be much more interesting to observe how bitcoin will behave in conditions of inflation in all countries of the world. We stock up on popcorn.

How do you think it is that as an entity this 'Britain' thing does seem to be always looking backward? Whether it is watching some 'period drama' or listening to some teenage pop star get nostalgic about their misspent youth, it does seem to me to be a regressive or at least retrospective culture. Is it as simple as the fact that we have a lot to go on when it comes to the past and history so it is easier to talk about and is less contentious than the future? Or is there something else going on. Like, does a globally oriented colonial master of this culture deliberately train/programme nationals to always be looking backward so that there is less competition for the future?

I think everything is just beginning. The most interesting is ahead. Great Britain has chosen the course of the movement for itself and these are its results. Continuing to move at such a pace, the country will be ruined. The country can move far, far back in the time of the dinosaurs. Well, we'll see what happens next. What else will the old woman have enough strength...

If the current price In uk Is making headlines truth what is going to happen with the war gets worse and all of the grain would have been impossible to actually transport causing even more price increase. The inflation is not going to get controlled this time but considering Ukraine, tye bread basket of Europe they need to look for alternatives to try and control.
Covid , War, New diseases, seems like inflation is inevitable as well, the only benefit would be from point of view of a rich person, the middle class and poors would have to struggle with it with the same salary

The consumer doesn't get any benefits from this but the only one that can is the producer, companies, sellers and business minded people because they can think of ways on how to use the situation as their advantage. Those can't afford are now in danger but they need to find ways, if ever there's still any? Only to keep up and continue living on this new standard. Inflation or an increase of it is expected already as this wasn't the first time that happened to us.

The only sad thing is that our salary is still the same. This seems not right but the government or the companies/employers must do something to help combat the issue.

The reason, well at least the main reason would be the fact that in the smaller nations it is easier for politicians to be corrupt. I know that makes sense to people who lived in a small nation, and maybe people who live in 100+ million population type of places may not understand this.

But, when you live in a nation with a small population, a small economy, and of course a small number of voters total, that means that you could be corrupt and you can get away with it, because you are reaching out to a lot of people with your corruption and getting their vote as well. You could literally have a few industry giants in your pocket, keep being a president thanks to that, and control the whole media since it is only a few channels.

isnt it funny how you accept that the dollar barrel is not the problem (yet america is having price problems where there is no conversion).. yet you ignore that fact..

and yet in britain you are stlil agreeing with me that the price per barrel is not the problem. but its instead the forex rate.. that has changed hmm.. i wonder if you ever consider that the forex rate has been adjusted due to the after effects.. not the cause.
many refineries dont actually hand pounds to american/saudi oil barons. nor do they have only pounds but convert to dollar on the day of purchase...
UK actually have dollar reserves from decades ago. (its like buying the dip. hoarding.. you know. investing for future hedges against inflation... i do so hope you atleast understand this concept.. it might aid you in bitcoin investment )

meaning whether its 2008 or 2020 they handed over the same amount of reserves.
the forex after purchase then changes to then reflect the market rate.

you know because maybe.. refineries are just smarter with money than a toddler you think they are
..
do you realise that they are making huge profits from this inconsistency of barrel price vs local retail price.
or do you actually think refineries are making a loss and forced to push prices up..

.. ill let you figure out that chicken and egg problem..
but here is a hint. forex market doesnt play to whims of reserve swaps. it actually bases the value of such reserve swaps against indicators of value like local retail common goods basket prices to set the value for the swaps.

meaning when petrol prices and food go up the forex then reflects that as a after effect.
where by the refineries have already got the oil and the forex markets are the reacting to the retail markets.

its how companies can make profits playing the markets even when the source goods are the same. by raising the retail prices to get profit. but then affect the market to make it look like they are making a loss/breaking even

the secret is is seeing if they are making profit .. then you know that they have played you too.

the funnier thing is that you honestly think that refinaries pay the oil price of june using the forex rate of the june retail indictors.. not even realising that they bought that oil tankers contents of oil many many months ago and refined it and distributed it, before june. but then sell it at a june price. which forex then reacts to

Isn't it lovely how you compare two prices one in dollars and one in pounds and you draw conclusions?

Let's do it properly:
Barrel of oil in 2008 120$, 1 GBP=2 USD , meaning one barrel of oil was 60 £
A barrel of oil is now 110$, 1 GBP= 1.2242 $, making one barrel of oil worth 90£

That makes an increase in £ for the barrel of oil 50%.

You yourself have said that the price was stable at £1.30, let's put 50%, you get £1.95, which is the current price...

You see, no conspiracy, simple math and logic, available in every elementary school from an early age!

if you look at the price per barrel of oil. the price is no higher then 2008..($120) yet fuel prices at the car petrol station pump is twice as high as 2008
its not the oil price(what car fuel is made from) fault..

there is no lack of supply of car fuel either. unlike a couple years ago. but even then a lack of supply car fuel did not cause petrol prices to go above £1.90/litre in the UK. it was more stable at like £1.30 during the supply shortage


this so called "crisis" is a more planned profiteering event, its the more local refineries that convert that oil into car fuel that are making the HUGE profits. (not higher costs to them.. only higher cost to the end-retail consumer)
this is because governments want to push car fuel prices up, to push people to move to low carbon cars (low engine capacity or electric cars) to speed up the "green agenda"

do not expect the price of car fuel to decline back to 2020 prices. they will remain high. as thats the whole point.
separate issue:
they want fuel/power companies to make huge profits. with a stipulation they can only have the profits tax free, if they invest that huge profit in switching to renewable technology sooner then scheduled.
which helps their big "green agenda" targets yet again

..
secondly.
government took cost people a trillion in QE for covid and the crisis before (2010-2021).. lets call that 1trillion loaf of bread value.(replace bread for any value indicator of living cost you prefer)
if over the next 10 years they can make a loaf of bread(replace bread for any value indicator of living cost) cost 5x more then what it did last year. then when they need to pay back 1.x trillion(fixed rate fixed monetary unit amount.). they only need to pay back 1x0billion loaf of bread value. (replace bread for any value indicator of living cost)
yep. repay 5x less in living cost. because thats how these sorts of loan contracts work in recession..
.. so governments are happy to push things up at the retail price end. because it shrinks the living cost value they need to repay
..

a side note.
the 2008 crash caused many issues in many industries. the ones that survived it done so by raiding the pension pots of their employee's which would have caused an impending next crash a few decades later.
however by causing an artificial and planned recession now, would mean although peoples guaranteed pots of XXX at retirement wont buy them as much bread as they were promised. that would have happened anyway., they can atleast have someone else to blame for it, so they get to hide some of that mis-spending.. and pretend it was not mis-spent, but instead just devalued due to recession

again imagine someones $£100k pension was cut in half due to the 2008 crisis of businesses stealing 50% of pension pots . by having a recession and making everything valued at say 5x less.. that $50k missing(25k loaves of bread) later becomes $50k($5k loaves of bread) so they can easily put in $50k to make it seems like nothing went missing in the future because it only cost them 5k loaves of bread value to refill a hole that was originally 25k loaves of bread value.

with things like the covid QE and now the energy QE they are shifting the blame of this earlier mis-spending away from banks and government..  by blaming events like the energy crises and covid, which they want to blame on slavic/asian  countries like russia and ukraine. and china as an ultimate cause of why peoples future pensions wont give retiree's a lifestyle they were expecting to get.

because to governments, they do not want to be seen that things went bad during conservatives power, and want to be seen that the conservatives were the solution makers(of their own problems they wont admit to)

He benefits from a stable economy. Inflation makes people spend more money, which oils the cogs and gears the economy towards a healthy road.

Yes, at the moment wages don't match the prices. But in the future, they will rise too. If we don't increase the price, then its production won't be beneficial. Businesses will shut down, factories will close, jobs will vanish, unemployment will rise and within a few months we might even have mad max scenarion IRL  

I’m wondering why small countries with highly developed economical structure is hitting with the inflation. There might be few meanings to my sentence up here but I’m talking about in the sense of managing the economical circular and stop the inflation from happening. They have better control over financial systems considering digital tracking, every person having their taxes paid off and less population with kingly control, why they have such failure is big complex for me. I can understand this happening for densely populated countries, high illiteracy rate and what not!

Something will have to give soon, it's simply unsustainable when it was running steady for around ten years around the 3% mark. Any potential savings that were accumulated during Covid are getting wiped out and wage rises are simply not happening. Even if wages do raise it just causes the inflation rate to go higher. Maybe a recession is both inevitable and necessary to reset to equilibrium as it seems like politicians have no interest in governing certain sectors which are making runaway profits. Sadly it's the average person who will suffer and the super rich carry on regardless.

It is not too surprising that these things have been warned about before, after the fuel price was pushed up. It is also very reasonable for the items to increase accordingly. But looking at some of the inflation problems in some of the top countries, I see a situation where they don't only accept fuel from Russia, but in essence it's also from India and China that they can buy in a more verbose way, and that also contributes to inflation in many economies.

How is the average citizen benefit from it, though? While I get your point of view, I'm only seeing an increased living cost for citizens, some of which are not able to afford and adapt to the higher costs. Inflation in Greece is currently at 11.3%, is that also considered within the expectations, when we're forced to pay over 10-15% over what we used to, without having an substantial increase in our salary to back it up?

It is what it is, rising prices. But at least the public can handle them for now.

There is no need for them to worry about things like this, because worry will make all kinds of stress-related diseases which will rack up your medical bill, at exactly the wrong time to do so.

So you should not panic if you can afford the price in the present. The future is not in your hands.

The increase in the rate of inflation in developed countries such as the United States, Britain, Switzerland and Germany, as well as most European countries, portends an acceleration of the deterioration of the global economy. I do not live in Europe, but I have friends in Europe and Canada as well. I always hear from them about the high prices of materials significantly compared to the past few years. There are many problems in the global economy and the Russian invasion of Ukraine deepened these problems much more. There are many complex reasons that caused this The economic situation is bad, but the most important ones, in my opinion, are the Corona epidemic in addition to the Russian-Ukrainian war, so the world must go to solve these problems, otherwise the situation will get worse.