Topic: UK inflation to top 18% in early 2023 - page 2. (Read 314 times)
it's true what some media have said,,, UK now looks like a developing country under the guise of a developed country, because from the political to the economic conditions, it's the same as developing countries.. i don't think that in recent years the UK's condition has improved, on the contrary it goes backwards when other countries advance
I am not surprised. And honestly the inflation is around that rate everywhere pretty much. You look at your bills and inflation is definitely more than 8-9% as from what the fed is saying.
Right now there needs to be a massive job correction. Unemployment needs to rise so people buy sell stuff, everything becomes cheaper, and labor is no longer tight and services are going to be cheaper also. Until that happens inflation will be crazy high.
Right now there needs to be a massive job correction. Unemployment needs to rise so people buy sell stuff, everything becomes cheaper, and labor is no longer tight and services are going to be cheaper also. Until that happens inflation will be crazy high.
Haha classic Britain always being behind! I mean sure their energy prices have been increasing exponentially for the past few months but at least they're catching up to the U.S.! Just kidding, I feel for them. I really do.
But on the bright side, at least brits have the BoE to help control the inflation! Unironically, they've been doing a great job so far....
But on the bright side, at least brits have the BoE to help control the inflation! Unironically, they've been doing a great job so far....
Quote
"The question now is what policy may do to offset the impact on both inflation and the real economy," Benjamin Nabarro said in a note to clients.
Perhaps the government should try implementing some policies to improve the economy, instead of making things worse with their haphazard attempts at damage control. 
Wood fires in the UK (especially in homes) are probabky the most efficient way to heat a room quite well. I've been in houses with them (even open plan ones) and they get very hot very fast if you want/need them to.
I'm surprised there aren't more ideas on the steps people can take to save money though - even simple things like switching from old light bulbs to new ones can save about 12x on electricity costs. Standing fees are high in the UK though which might be a problem.
The UK is facing bigger issues because the government and companies aren't doing anything about it. If it didn't cost much more to make green energy before and now gas costs 2-4x the price, maybe you need to roll out green energy faster (forcing energy firms to spend money on investing in green energy that they can then keep going with would be a great policy to bring in but for some reason it's not being done)?
I'm surprised there aren't more ideas on the steps people can take to save money though - even simple things like switching from old light bulbs to new ones can save about 12x on electricity costs. Standing fees are high in the UK though which might be a problem.
The UK is facing bigger issues because the government and companies aren't doing anything about it. If it didn't cost much more to make green energy before and now gas costs 2-4x the price, maybe you need to roll out green energy faster (forcing energy firms to spend money on investing in green energy that they can then keep going with would be a great policy to bring in but for some reason it's not being done)?
First of all it is a forecast*, so its not reality just yet, we are not in ealry 2023 so until that happens we have no idea whats going to happen. But I still think that about %10-15 range is definitely realistic and will be around those levels. I am living in a nation with %160 inflation and we are not dead, which means that even though the life will be much worse, doesn't mean that it will be terrible for everyone. Just realize that you can't do much else but accept the situation. Just wait for it to get better and meanwhile have a bad life, thats literally what you can do and there is nothing that you can do, just accept it and live a bad life, people who try to find a way will fail not because there isn't one, but because nobody will care to fix it anyway.
Inflation has always been the major compromise to any country's economy thus, this situation is very appalling and needs immediate rehabilitation for the winter; it's gonna be worst when the government are too concerned about politics but cannot solve major inflation traumas like this , that makes me sick to my stomach...
The Government should prioritize the physical wellness of the citizens; climatic change is no one's fault but nature must have it's way and this,as a matter of fact are seasons that must come and go. During the winter, the regional temperature rises up to with which it's almost impossible to survive without proper suitings and medications.
I personally will urge whoever is in control of building houses around that peripherals to do the proper thing. I mean,how should people burn up thier trash/bins just to warm up?? That's equally killing yourself down...huh
Sandra ❣️
Quote
LONDON, Aug 22 (Reuters) - British consumer price inflation is set to peak at 18.6% in January, more than nine times the Bank of England's target, an economist at U.S. bank Citi said on Monday, raising his forecast once again in light of the latest jump in energy prices.
"The question now is what policy may do to offset the impact on both inflation and the real economy," Benjamin Nabarro said in a note to clients.
Consumer price inflation was last above 18% in 1976.
The front-runner to become Britain's next prime minister, Liz Truss, is likely to come up with measures to support households hit by surging energy prices, which might slightly lower the peak rate of inflation, Nabarro said.
Energy regulator Ofgem is due to set out new maximum tariffs for households on Friday, which will take effect in October.
The last tariff increase in April raised the annual bill for a typical household to 1,971 pounds ($2,322) from 1,278 pounds, following a surge in natural gas prices after Russia's invasion of Ukraine.
The next increases are likely to be steeper still, after a 15% rise in natural gas prices over the past week.
Citi forecasts Ofgem will raise the tariff cap to the equivalent of 3,717 pounds from October, with further increases to 4,567 pounds in January and 5,816 pounds in April 2023.
Energy analysts Cornwall Insight also raised their forecasts for Ofgem's regulated tariffs to 3,554 pounds for October, 4,650 pounds for January and 5,341 pounds for May.
"It is difficult to see how many will cope with the coming winter," Cornwall Insight consultant Craig Lowrey said.
In its forecasts at the start of August, the BoE assumed the cap would rise to around 3,500 pounds in October and that energy prices would then stabilise. Consumer price inflation would thus peak at 13.3% in October.
With inflation now set to peak substantially higher, the BoE's Monetary Policy Committee was likely to conclude that the risks of more persistent inflation had intensified, Citi said.
"This means getting rates well into restrictive territory, and quickly," Nabarro said. "Should signs of more embedded inflation emerge, we think Bank Rate of 6-7% will be required to bring inflation dynamics under control. For now though, we continue to think evidence for such effects are limited."
The BoE announced a rare half-percentage-point interest rate increase earlier this month and investors expect another big move when the MPC makes its next scheduled monetary policy announcement on Sept. 15.
Nabarro forecast retail price inflation, which is used to set the return on index-linked bonds, would peak at 21.4%.
($1 = 0.8487 pounds)
https://www.reuters.com/world/uk/uk-inflation-hit-18-early-2023-citi-forecasts-2022-08-22/
"The question now is what policy may do to offset the impact on both inflation and the real economy," Benjamin Nabarro said in a note to clients.
Consumer price inflation was last above 18% in 1976.
The front-runner to become Britain's next prime minister, Liz Truss, is likely to come up with measures to support households hit by surging energy prices, which might slightly lower the peak rate of inflation, Nabarro said.
Energy regulator Ofgem is due to set out new maximum tariffs for households on Friday, which will take effect in October.
The last tariff increase in April raised the annual bill for a typical household to 1,971 pounds ($2,322) from 1,278 pounds, following a surge in natural gas prices after Russia's invasion of Ukraine.
The next increases are likely to be steeper still, after a 15% rise in natural gas prices over the past week.
Citi forecasts Ofgem will raise the tariff cap to the equivalent of 3,717 pounds from October, with further increases to 4,567 pounds in January and 5,816 pounds in April 2023.
Energy analysts Cornwall Insight also raised their forecasts for Ofgem's regulated tariffs to 3,554 pounds for October, 4,650 pounds for January and 5,341 pounds for May.
"It is difficult to see how many will cope with the coming winter," Cornwall Insight consultant Craig Lowrey said.
In its forecasts at the start of August, the BoE assumed the cap would rise to around 3,500 pounds in October and that energy prices would then stabilise. Consumer price inflation would thus peak at 13.3% in October.
With inflation now set to peak substantially higher, the BoE's Monetary Policy Committee was likely to conclude that the risks of more persistent inflation had intensified, Citi said.
"This means getting rates well into restrictive territory, and quickly," Nabarro said. "Should signs of more embedded inflation emerge, we think Bank Rate of 6-7% will be required to bring inflation dynamics under control. For now though, we continue to think evidence for such effects are limited."
The BoE announced a rare half-percentage-point interest rate increase earlier this month and investors expect another big move when the MPC makes its next scheduled monetary policy announcement on Sept. 15.
Nabarro forecast retail price inflation, which is used to set the return on index-linked bonds, would peak at 21.4%.
($1 = 0.8487 pounds)
https://www.reuters.com/world/uk/uk-inflation-hit-18-early-2023-citi-forecasts-2022-08-22/
....
18% UK inflation forecasts are a surprising statistic. The UK doesn't appear to be doing any of the stereotypical things that lead to high inflation, from a historical perspective. Surging energy prices being the only sector mentioned. Perhaps the headline should read: "UK energy price inflation targeted to reach 18% in 2023"?
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?
Jump to: