FabSwingers.com forum: Inflation Watch

By (user no longer on site) OP
over a year ago

Inflation is down, as interest rate hikes start to bite. With more hikes to follow.

The pound drops on this news.

So really fuel becomes more expensive because we buy fuel in dollars so inflation increases, am I missing something?

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By *otMe66Man
over a year ago

Terra Firma

That is a symptom of increasing interest rates.. we need to slow spending down to bring inflation down. It is not slowing quickly enough as the BoE tiptoes around the interest rate hikes, this will result in minor drops in inflation but not enough to really make the dent it needs to do.

In my opinion they should hike the interest rate up quickly and get this over and done with, it is taking too long to kick in and it is simply dragging on.

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By *idnight RamblerMan
over a year ago

Pershore

"Inflation is down, as interest rate hikes start to bite. With more hikes to follow.

The pound drops on this news.

So really fuel becomes more expensive because we buy fuel in dollars so inflation increases, am I missing something?

True, but the wholesale cost of oil is less than one third the pump retail price, and the £ has been strong recently. But generally there are downward pressures on inflation which is good news.

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By *orleymanMan
over a year ago

Leeds

"Inflation is down, as interest rate hikes start to bite. With more hikes to follow.

The pound drops on this news.

So really fuel becomes more expensive because we buy fuel in dollars so inflation increases, am I missing something?

The trend follows tbe downturn of fuel and gas costs in the main. Which i would pin point as the main component of costs.

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By *irldnCouple
over a year ago

Brighton

Interesting that BoE also blame wage increases for inflation and demand pay restraint while in the last year they have paid their staff £25m in bonuses (no that is not a wage) so wages = bad but bonuses = good?

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By *exy_HornyCouple
over a year ago

Leigh

A much better way of slowing the economy would be to reward savers by increasing the tax free savings allowance.

People would save more and spend less.

It would also not penalise the small number of homeowners who are changing mortgage deals.

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By *orleymanMan
over a year ago

Leeds

"Interesting that BoE also blame wage increases for inflation and demand pay restraint while in the last year they have paid their staff £25m in bonuses (no that is not a wage) so wages = bad but bonuses = good?"

Bring back merv

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By *abioMan
over a year ago

Newcastle and Gateshead

"Inflation is down, as interest rate hikes start to bite. With more hikes to follow.

The pound drops on this news.

So really fuel becomes more expensive because we buy fuel in dollars so inflation increases, am I missing something?

1 key point.. that is is everything else is relative

But it’s not quite because

a) the price of oil isn’t stable….

b) the oil companies are quick to pass on increases but not so quick in passing through drops in prices…

c) us inflation also has been dropping as well…. The figures they reported last week was now at 3%

So remember the excuse the conservatives gave when inflation was near 12% and they said it was a global issue… well the drops have also been global

The uk quoted 7.9% today, the us reported 3% last week, the Eu quote theirs next week but last month it was 6.5%

So in comparison it’s still higher than most… but this drop should hopefully mean interest rates should stay stable which should also mean mortgage rates won’t go up either

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By *orleymanMan
over a year ago

Leeds

"Inflation is down, as interest rate hikes start to bite. With more hikes to follow.

The pound drops on this news.

So really fuel becomes more expensive because we buy fuel in dollars so inflation increases, am I missing something?

1 key point.. that is is everything else is relative

But it’s not quite because

a) the price of oil isn’t stable….

b) the oil companies are quick to pass on increases but not so quick in passing through drops in prices…

c) us inflation also has been dropping as well…. The figures they reported last week was now at 3%

So remember the excuse the conservatives gave when inflation was near 12% and they said it was a global issue… well the drops have also been global

The uk quoted 7.9% today, the us reported 3% last week, the Eu quote theirs next week but last month it was 6.5%

So in comparison it’s still higher than most… but this drop should hopefully mean interest rates should stay stable which should also mean mortgage rates won’t go up either

I would say ook when their Inflation began.

Eg may 21

Uk inflation 2.1%

Usa inflation 4.99

Feb 22

Uk 6.2%

Usa 7.87%

If you use ychartsvyou can see this lag.

Our begins July 21 roughly.

Usa around Feb

I do agree ours is higher at its peak though.

But is seemingly lagging 4-6 months behind

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By *idnight RamblerMan
over a year ago

Pershore

"A much better way of slowing the economy would be to reward savers by increasing the tax free savings allowance.

People would save more and spend less.

It would also not penalise the small number of homeowners who are changing mortgage deals."

Offering decent interest rates on savings would help too.

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By *otMe66Man
over a year ago

Terra Firma

[Removed by poster at 19/07/23 19:20:52]

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By *otMe66Man
over a year ago

Terra Firma

"A much better way of slowing the economy would be to reward savers by increasing the tax free savings allowance.

People would save more and spend less.

It would also not penalise the small number of homeowners who are changing mortgage deals."

I’m not sure that would make a lot of difference, people have had a lot more money in their pockets from covid lockdowns.

Working from home and nowhere to spend, boom

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By (user no longer on site)
over a year ago

"A much better way of slowing the economy would be to reward savers by increasing the tax free savings allowance.

People would save more and spend less.

It would also not penalise the small number of homeowners who are changing mortgage deals.

I’m not sure that would make a lot of difference, people have had a lot more money in their pockets from covid lockdowns.

Working from home and nowhere to spend, boom

I think the cost of living crisis has probably destroyed most of that saving, tbf.

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By *otMe66Man
over a year ago

Terra Firma

"A much better way of slowing the economy would be to reward savers by increasing the tax free savings allowance.

People would save more and spend less.

It would also not penalise the small number of homeowners who are changing mortgage deals.

I’m not sure that would make a lot of difference, people have had a lot more money in their pockets from covid lockdowns.

Working from home and nowhere to spend, boom

I think the cost of living crisis has probably destroyed most of that saving, tbf."

Or contributed to it, lots of money in circulation inflation rising, oil price and food rises but the initial uplifts being ridden out.

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