UK inflation to top 18% in early 2023

mm2543363580

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Quote from: DooMAD on September 11, 2022, 07:25:24 PM

Quote from: Mauser on September 10, 2022, 09:49:50 AM

Eventually the inflation rate needs to be brought down, you can't have double digit inflation rates for a longer period of time. If things get worse this could lead to a spiral and bring inflation out of control. Finding a new government probably also didn't help.

It's not going to improve any time soon. In fact, it'll probably get much worse. The new government describe themselves as "unashamedly pro-growth". This will likely only exacerbate the current trends, as rapid economic growth typically causes inflationary pressures.

Inflation is breaking the backbone of everyone in every corner of the world.
There is no denying that inflation is lethal and that we all are victim of inflation. But to get rid of inflation we all have to work real hard for financial independence

mm2543363580

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Quote from: $anounimus$ on September 06, 2022, 11:16:29 AM

Inflation is already a global problem including for the British people, but it looks like it will get a lot worse before it gets better to tame inflation. Personally, I think there are two issues at play here. The first is that the problem of higher inflation has existed for some time, yet it has not been given the attention it deserves.

It is possible that the price increase will continue to increase with little response from the government. The second problem is the impact of inflation on businesses and entrepreneurs. Many financial planners recommend budgeting at least five percent more annually to accommodate this rising inflation rate. That's hardly ideal for those vying for a certain profit margin by the end of the year.

in my view, The government needs to find a way of maintaining a soft Brexit and also keep inflation below 18 percent. It will be an interesting challenge.

inflation is real - whatsoever the case is but the acceptability is not everywhere
People celebrated the family time during COVID and when they came out from it - they were shocked to see the new world of inflation. It will never come on control - not at least for next couple of years

DooMAD

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Quote from: Mauser on September 10, 2022, 09:49:50 AM

Eventually the inflation rate needs to be brought down, you can't have double digit inflation rates for a longer period of time. If things get worse this could lead to a spiral and bring inflation out of control. Finding a new government probably also didn't help.

It's not going to improve any time soon. In fact, it'll probably get much worse. The new government describe themselves as "unashamedly pro-growth". This will likely only exacerbate the current trends, as rapid economic growth typically causes inflationary pressures.

Mauser

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Quote from: Hydrogen on August 25, 2022, 06:06:59 PM

Its strange to see these headlines lacking commentary on the internet. No one appears to be scrambling to mitigate rising energy costs. It seems as if many will be caught unprepared and unaware by it.

Should more steps be taken to address this?

I also find it strange that there is no stronger focus on the inflation now. This week with the death of the Queen nobody will look at evomics, but before there should have been more pressure to fix the economic outlook. The next two weeks will be public mourning and not much else happening. Eventually the inflation rate needs to be brought down, you can't have double digit inflation rates for a longer period of time. If things get worse this could lead to a spiral and bring inflation out of control. Finding a new government probably also didn't help. But the good thing is UK still has it's own currency and react freely now without worrying about the EU.

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Inflation is already a global problem including for the British people, but it looks like it will get a lot worse before it gets better to tame inflation. Personally, I think there are two issues at play here. The first is that the problem of higher inflation has existed for some time, yet it has not been given the attention it deserves.

It is possible that the price increase will continue to increase with little response from the government. The second problem is the impact of inflation on businesses and entrepreneurs. Many financial planners recommend budgeting at least five percent more annually to accommodate this rising inflation rate. That's hardly ideal for those vying for a certain profit margin by the end of the year.

in my view, The government needs to find a way of maintaining a soft Brexit and also keep inflation below 18 percent. It will be an interesting challenge.

Scripture

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Quote from: dark1234 on September 04, 2022, 06:00:14 PM

If this happens - an inflation of 18% - of course it will have fatal consequences for the people who actually have lower middle income, the government must find solutions and adjust income and salaries for them, because electricity and gas energy needs are important before winter arrives.

Higher inflation started to feel in UK since the Brexit, and the UK government really knows the effect of that and I'm sure they are more ready by that time but due to unforeseen circumstances started from the Covid, other issues and now with the war between Ukraine and Russia, the situation becomes more worst and unexpected for them. That high inflation should address right away, or else they will suffer more. They are conserving their gas consumption for the winter, but I don't think it's enough to fully control the inflation, to lower that rate it will take years and probably a decade especially if they still have no solution for this.

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Quote from: Smack That Ace on September 06, 2022, 12:40:28 AM

they must always find ways to maintain the company, always have to come up with new initiatives, and create different products, under competitive pressure from competitors...

Much of that gets delegated to middle-management in large corporations. There may be occasions where it could be justified for a CEO to be earning 1000% above what anyone else in the company earns. Yet in some companies, the disparity can be as high as 50000% or greater. And the gap is growing.

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Quote from: DooMAD on September 04, 2022, 08:30:40 AM

Quote from: adaseb on September 03, 2022, 11:40:22 PM

People find higher paying jobs and those employers need to increase salaries. When they do that they need to increase costs and it’s a never-ending cycle.

I notice no one ever argues that the big CEOs and chairmen taking home millions in wages and bonuses are causing inflation. But as soon as ordinary workers request a living wage, suddenly it's a problem. Bullshit peddled by apologists for exploitative employers.

That's common in most companies. CEOs only focus on getting richer without even valuing the hard work of their employees by granting at least a little increase which will be helpful, especially during this crisis. They should make their employees valued and important because they are the body of the company. Without them, CEOs won't gain anything.

Can't be compared that way, though when we look at that picture we'd say that's not fair. The workers work hard and they only complete the assigned work, other than that they don't have to do anything extra. But for a CEO of a company or a corporation. In addition to running a company with thousands of employees, they must always find ways to maintain the company, always have to come up with new initiatives, and create different products, under competitive pressure from competitors...in general, they are under a lot of pressure that we don't see. We work as hired laborers to support our family and loved ones, maybe for 5 to 7 people but with positions like CEO, they are taking care of jobs for millions of workers. That's a lot of pressure.

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Quote from: lucates on September 05, 2022, 03:09:34 PM

Last time the UK's consumer inflation crossed the 18 percent mark was in 1976. For June Uk reported 10.1 percent inflation the highest in 40 years and that figure has been triggered by the global energy price rise a fallout from the war in Ukraine. Now energy retailers asking for a tarriff deficit fund which freeze the price of the energy right now and we can pay it back when the prices are a bit lower. But ultimately people's mental health is likely to be suffering as well as their pockets.

This situation is bad but the worst part is that it does not seem as if things are going to improve soon, so the high inflation is going to be with us for a long time and this is very problematic because many people are already having problems paying for their bills, and if we add even more inflation during the next years then at some point those people will reach a breaking point and they will be unable to maintain their current standards of living.

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Last time the UK's consumer inflation crossed the 18 percent mark was in 1976. For June Uk reported 10.1 percent inflation the highest in 40 years and that figure has been triggered by the global energy price rise a fallout from the war in Ukraine. Now energy retailers asking for a tarriff deficit fund which freeze the price of the energy right now and we can pay it back when the prices are a bit lower. But ultimately people's mental health is likely to be suffering as well as their pockets.

dark1234

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If this happens - an inflation of 18% - of course it will have fatal consequences for the people who actually have lower middle income, the government must find solutions and adjust income and salaries for them, because electricity and gas energy needs are important before winter arrives.

DooMAD

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Quote from: adaseb on September 03, 2022, 11:40:22 PM

People find higher paying jobs and those employers need to increase salary. When they do that they need to increase cost and it’s a never ending cycle.

I notice no one ever argues that the big CEOs and chairmen taking home millions in wages and bonuses are causing inflation. But as soon as ordinary workers request a living wage, suddenly it's a problem. Bullshit peddled by apologists for exploitative employers.

hugeblack

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It has been a long time since the last visit to Britain but I do not think inflation rate at 18% will be acceptable, but at least, the central bank has one of the tools that make it decrease in a short period, so this inflation is phased.
the federal policies will greatly affect the financial instrument in Britain.
Generally, citizens have no much to this winter, but many expect things to improve, so citizens only have to wait for the violation of the crisis and wish that the winter will be lighter than before.

adaseb

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The issue right now with many economies is the job numbers. The numbers are way too high and unemployment is way too low. Sounds good but this is one of the reasons why inflation keeps growing.

People find higher paying jobs and those employers need to increase salary. When they do that they need to increase cost and it’s a never ending cycle.

Ultegra134

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I recently saw a video (will update my post if I stumble upon it again) regarding UK's inflation records in electricity, claiming that UK's reliance on Russian imports was only 4% for CNG, but still, they were facing massive surges in electricity prices. A quick google searched revealed that UK's imports are minimal, about 9% of oil and 22% of coal are imported from Russia. Facing such high electricity and petrol prices looks pure speculative to me. Correct me if I'm wrong, someone from UK might be more knowledgeable, but I don't see another reason.

Personally, I believe that some corporations are taking advantage of the current situation and excessively increase their prices in the name of war. Electricity providers and oil companies are some reasonable examples, who have scored billions in profits the past few months.

Source: https://commonslibrary.parliament.uk/research-briefings/cbp-9523/

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YoY inflation on 18% is unlikely, but despite that is going to be very high. The social context is already close to the seventies, with a number of strikes on key sectors such as transportation, quite more intense than usual. Some of them do not get on the news, but they are successful and that means that more people are actually being able to update the salaries.

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Quote from: Hydrogen on August 25, 2022, 06:06:59 PM

What steps can consumers take to protect themselves from rising cost of energy and winter heating? Electric heaters were one option mentioned. Conventional wood stoves could be viable for those in rural areas with renewable and natural sources of fuel to burn. If worse comes to worse, trash could be burned to produce heat.

I've heard that homes in the UK are built without heat insulation in the ceiling in an effort to "trap heat" from sunshine. Adding insulation in the ceiling could help to keep heat contained in living spaces. Although I'm not an architect or home builder who has actually tried this to test it.

Its strange to see these headlines lacking commentary on the internet. No one appears to be scrambling to mitigate rising energy costs. It seems as if many will be caught unprepared and unaware by it.

Should more steps be taken to address this?

The usual methods against protecting one's self from inflation don't apply when there are artificial product shortages, meaning the UK inflation rate is a development strictly from energy costs (in addition to the post COVID money printing, but obviously that would not result in a near 20 percent inflation rate). I don't think there's an actual solution that the government could endorse other than radically shifting their energy policy to include cheap oil/natural gas and dumping renewables entirely. How many UK residents can reasonably obtain alternative heating methods? Consider that the price of firewood, insulation costs, etc. would begin to rise as demand for heating alternatives rise -- you wouldn't end up at a solution even if trying to find alternatives.

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Quote from: jackg on August 25, 2022, 09:59:56 PM

The UK is facing bigger issues because the government and companies aren't doing anything about it.

Arguably by design. The government are doing everything they can to funnel as much money as possible into the pockets of wealthy business owners who probably donate large sums to their reelection campaigns. It's not in their (short term) interests to do anything about it. They clearly want it like this. A deliberate and willful act.

fiulpro

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The overall cost of Living, electricity, gas, everything is sky rocketing at the moment and this winter is going to be extremely hard as well for the people who are living in the UK but at the end I do think new Presidents will try and solve this so that they get people's attention and also votes thus this seems to be a perfect ploy to have a new governing party since the country is not so bent over to solve them at the moment, remember the words of Boris Johnson, when he said that people should wear more clothes during the winter when the was asked about the rising prices of gas and problem with heating household etc.

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FED is in USA, and this is UK we are talking about. So, "technically" speaking UK could have 18% while USA having 59. But I agree, if you look at everything in price, it looks like it's a lot more in the USA as well. Don't get me started on my nation, at this point I feel like everything is 5x more expensive, maybe it is not "that" much but it certainly does feel that way.

I make 3x more than I used to make compared to last year, and I am still having hard time living, last year I was living a lot better even though I made less. That's the trouble isn't it? I mean if you made half of what you are making right now and lived richer, that should be the key factor to why inflation is bad.

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